PayPal announced today that it has agreed to acquire Hyperwallet, a leading global payout platform, for $400 million in cash.
Hyperwallet was founded in Vancouver in 2000 by Lisa Shields.
According to today’s announcement, the acquisition of Hyperwallet enhances PayPal’s payout capabilities, improving the company’s ability to provide an integrated suite of payment solutions to e-commerce platforms and marketplaces around the world.
“Ecommerce 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 ecommerce platforms and marketplaces — however large or small — leverage world-class payout capabilities in over 200 markets.”
Upon closing, PayPal and Braintree merchants will gain localized, multi-currency payment distribution capabilities in more than 200 markets with numerous disbursement options, including prepaid card, bank account, debit card, cash pickup, check and PayPal.
“We are thrilled to be joining forces with a powerhouse like PayPal,” said Brent Warrington, CEO, Hyperwallet. “Combining Hyperwallet’s advanced payout capabilities with PayPal’s scale will bring increased value to both Hyperwallet’s and PayPal’s customers. This is an outstanding opportunity to supercharge Hyperwallet’s growth and further our mission to pay the planet.”
The transaction is expected to close in the fourth quarter of 2018.
Last year PayPal acquired Vancouver’s TIO Networks, a cloud-based multi-channel bill payment processing and receivables management company for $304 million.