This Acquisition Could Help PayPal Crush the Competition
People familiar with the matter cautioned the Journal that the talks could break down, but Braintree’s transaction fees and valuable mobile data would help PayPal maintain its leadership the mobile payments sphere with an already incredibly successful company. Merchants can set up mobile payments through Braintree for a 2.9 percent commission and a 30 cent transaction fee, and Braintree makes it easy for merchant’s customers to pay via mobile device.
The site processes over $10 billion annually, a figure that will continue growing as consumers switch to mobile devices for their online shopping needs. According to research from Gartner cited by the Journal, mobile payments will grow 31 percent to $235.4 billion this year, and that figure is expected to triple by 2017.
Companies like Braintree make it easier to make purchases via mobile, where consumers have shown less patience with typing in credit card information than on computers due to the smaller screens of mobile devices and the fact that people are often on the go while using them.