David Marcus (PayPal President) and Bill Ready (Braintree CEO)

E-commerce giant eBay acquires mobile payment gateway Braintree

E-commerce giant  EBay has agreed to acquire Braintree, a Chicago-based payments start-up, for $800 million in cash.

Braintree also owns a popular payment app, “Venmo” that  lets consumers make payments on smartphones and tablets.

Braintree projects $12 billion in 2013 payments for clients — currently powers payments for companies like Rovio, Uber, OpenTable, Fab, Airbnb, TaskRabbit and Heroku.

The online payments platform Braintree was founded in 2007 by Bryan Johnson, a University of Chicago Booth School of Business graduate.

Braintree will continue to operate as a separate service within PayPal led by Braintree’s Chief Executive Bill Ready, EBay said.

Braintree’s roughly 200 employees are staying with the company. EBay recently acquired Svpply, a social shopping site; and Hunch, a recommendation engine.

David Marcus (PayPal President) and Bill Ready (Braintree CEO)

David Marcus (PayPal President) and Bill Ready (Braintree CEO)

David Marcus, the president of PayPal, said that “Braintree’s international reach impressed him, and the fact that the company was a good fit culturally. He said that Braintree would remain in Chicago and Venmo in New York, but the companies would collaborate to continue to find ways to “build a payments operating system that others can innovate on top of.”

➤  eBay Inc. to Acquire Global Payments Innovator Braintree [Business Wire] | Braintree

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