London, Sept. 27 (ANI): Online shopping site eBay has reportedly purchased online payment firm Braintree for 800 million dollars in a bid to boost its PayPal unit's presence on mobile devices.
Despite PayPal being dominant in the online payment platform, it faces competition from firms such as Chicago-based Braintree, whose Venmo app lets consumers make payments on smartphones and tablets.
According to the BBC, about 40 percent of eBay's revenues come from PayPal, which has 120 million users.
An analyst at RBC Capital Markets, Mark Mahaney said that the deal between eBay and Braintree makes reasonable sense strategically as it expands PayPal's distribution and removes a competitor.
eBay's vice president of global product, Hill Ferguson hinted towards more acquisitions to boost PayPal's mobile offering.
The company said that the acquisition of Braintree should be completed by the end of the year, the report added. (ANI)