Braintree purchased by eBay

<p>The purchase of Braintree has been confirmed by eBay.</p>

Online auction site eBay has confirmed the purchase of payments firm Braintree.

The company revealed that it has paid about $800 million (£500 million) for Braintree in a move expected to strengthen its PayPal brand.

Mark Mahaney, an analyst at RBC Capital Markets, explained that Braintree – with its Venmo app for mobile payments – was viewed as a competitor for PayPal, so the deal "makes reasonable sense strategically".

Hill Ferguson, eBay's vice-president of global product, explained that the company could yet buy more companies in order to strengthen PayPal in the future.

Currently, about 40 per cent of the revenues made by eBay come through PayPal, which is one of the most recognisable mobile payments brands in the world.

Yesterday (September 26th), saw the share price of eBay rise and when the Nasdaq opens later in the day, stocks will be selling for 56.64 initially. This is close to the 52-week high of 58.04 recorded by the firm.

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