PayPal announced that it is set to acquire HyperWallet, a digital payout provider aimed at the sharing and gig economies, for $400 million in cash.
PayPal said the acquisition will enhance PayPal’s payout capabilities and allow it to provide payment solutions to ecommerce platforms and marketplaces globally. Once the deal is closed, PayPal and Braintree merchants will receive access to Hyperwallet’s localized, multi-currency payment distribution capabilities in over 200 markets.
HyperWallet, which was founded in Vancouver by Lisa Shields, is headquartered in San Francisco with offices in Austin, London, Sydney, and Vancouver. The company provides organizations with a way to distribute funds to their sellers, content producers, contractors, suppliers, and resellers.
“Combining Hyperwallet’s advanced payout capabilities with PayPal’s scale will bring increased value to both Hyperwallet’s and PayPal’s customers.”
– Brent Warrington
“We are thrilled to be joining forces with a powerhouse like PayPal,” said Brent Warrington, CEO of 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.”
Hyperwallet raised growth equity financing from Primus Capital in June 2014, and announced plans to expand into London, United Kingdom in February 2017.
The deal between PayPal and Hyperwallet is expected to close in the fourth quarter of 2018. Once the acquisition closes, Warrington and the Hyperwallet team will report to Braintree’s general manager Juan Benitez.
“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 of 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.”
Photo via Glassdoor.