Paypal acquires payment provider Hyperwallet for $400m

By

Benjamin Fitzgerald

Published
Jun 20, 2018

PayPal Holdings Inc. announced on Monday that it has agreed to acquire Hyperwallet, a global payout platform, for $400 million in cash. The moves hopes to bolster options at PayPal to compete with growing competition.

The California-based PayPal said the acquisition of Hyperwallet looks to improve payout capabilities, providing an integrated array of payment solutions for e-commerce platforms and marketplaces globally.

"E-commerce platforms and marketplaces are leveling the retail playing field by connecting buyers who have specific needs with groups of sellers that can meet them,” said Bill Ready, chief operating officer, PayPal.

“Merchants and service providers who use these platforms want quick, efficient, flexible and secure access to their earnings, whenever and wherever they need them. By acquiring Hyperwallet, we will strengthen our ability to provide an integrated end-to-end solution to help e-commerce platforms and marketplaces — however large or small — leverage world-class payout capabilities in over 200 markets.”

Hyperwallet offers a platform where e-commerce businesses can easily make payments to independent sellers or contractors. The platform converts currencies depending on where in the world the payee is located. It is these capabilities that PayPal wants to put into its own payments platform, and will immediately be able to offer them in the 200 markets serviced by Hyperwallet around the world.

The deal is expected to close in the fourth quarter of this year, and is subject to closing conditions and regulatory approvals.

Hyperwallet has offices in San Francisco, Austin, London, Sydney, and Vancouver. PayPal is headquartered in San Jose, California.