eBay continues to make aggressive moves in the mobile commerce field
Retail giant already boasts of a formidable presence in the mobile sector, but that does not mean that the company has grown complacent. Through its PayPal subsidiary, eBay has been working to engage consumers throughout the world on the field of mobile commerce. With mobile devices becoming more common, people around the world are beginning to engage in new forms of commerce. Mobile commerce has become one of the most lucrative fields in the mobile space and has attracted the interest of retail and technology companies of all kinds.
Braintree expects to process $12 billion in payments this year
This week, eBay announced its acquisition of Braintree, a mobile commerce specialist, for $800 million. The company plans to combine Braintree with the mobile payments division of PayPal in order to bolster its growing mobile commerce infrastructure. Braintree estimates that it will process more than $12 billion in mobile payments this year and it lists Rovio, OpenTable, TaskRabbit, and Heroku among its clients.
Venmo application now available to eBay
Through the acquisition, eBay has gained access to Braintree’s Venmo application, which facilitates mobile payments from smartphones and tablets. The application is yet another platform through which eBay and PayPal can engage mobile consumers. PayPal is a strong advocate of mobile commerce platforms that are not wholly reliant on NFC technology. The company has some security concerns when it comes to NFC and is also critical of the exclusive nature of the technology. The low availability of NFC-enabled mobile devices makes it difficult for many consumers to participate in mobile commerce in any meaningful way.
Braintree expected to continue current operations alongside PayPal
Braintree is expected to continue many of its current operations. Per the acquisition, the company will exist as a separate entity within PayPal and will provide services that will fall under the Braintree name. The company is also engaged in a partnership with Facebook concerning streamlining mobile commerce through the Auto Fill with Facebook initiative.