PayPal Holdings Inc. (PYPL) is a major participant in digital payments through its online and mobile application payment platform. Faced with more and more fintech startups and technology giants, such as Apple (AAPL) and Alphabet Inc. (GOOG), it has maintained a strong position. The company provides various digital payment services to 305 million account holders worldwide, enabling them to send and receive funds, hold balances, withdraw funds, and perform other functions.
PayPal was originally a remittance service developed by the startup Confinity Inc. in 1999.In 2000, Confinity merged with Elon Musk’s online banking site X.com, which was renamed PayPal before going public in 2002. PayPal was acquired by eBay Inc. (EBAY) for $1.5 billion shortly afterwards, and it remained a part of the company for the next 13 years until it was split in 2015. In 2019, PayPal’s revenue was 17.8 billion U.S. dollars, and the total payment was 712 billion U.S. dollars.Its market value is close to 209 billion US dollars.
In recent years, PayPal has made a number of important acquisitions to drive its growth. In most cases, these transactions expanded PayPal’s customer base or its service offerings. In short, these acquisitions have helped PayPal significantly increase payment volume, which is a key indicator used by investors to measure the company’s health and progress. Below, we will look at five important PayPal acquisitions. In particular, note that PayPal does not provide revenue and profit data for subsidiaries.
Honey Science Corporation
- Business type: online coupons and discounts
- Purchase price: about 4 billion U.S. dollars
- Purchase Date: November 20, 2019
Honey is an online coupon and discount company that provides browser extension applications that can automatically apply coupons on e-commerce sites. Founded in 2012, Honey currently has more than 17 million members and has saved more than $1 billion for members since its launch.Recently, the company has expanded to provide mobile shopping assistants, price tracking tools and other services.PayPal’s acquisition of Honey for approximately US$4 billion is the largest acquisition in its history. The acquisition achieved a dual goal: to simplify the online shopping and payment experience for PayPal customers, and to promote consumer engagement and sales for merchants.
- Business type: payment processing
- Purchase price: approximately US$2.2 billion
- Purchase Date: September 20, 2018
Sweden’s iZettle was established in 2010 as a mobile credit card payment service company. It also boasts the first ever mini chip card reader.Over time, the company has grown to provide various services to small businesses in Europe and Latin America, such as software support and financing solutions. iZettle is the main competitor of PayPal’s competitor, Square Inc. (SQ). PayPal acquired iZettle mainly to expand its in-store business with small businesses to compete with Square and expand its business in the European and Latin American markets.
- Business type: mobile payment
- Purchase price: approximately US$800 million
- Purchase Date: September 26, 2013
PayPal’s parent company eBay acquired Chicago-based Braintree for US$800 million in cash in 2013. Help PayPal become a one-stop shop for global merchant account services and payment processing. Founded in 2007, Braintree has developed a payment gateway that supports and automates online payments for merchants and online businesses, and provides services for 45 countries and 130 currencies. The acquisition also includes Venmo, a peer-to-peer mobile payment application that Braintree acquired a year ago. After being spun off from eBay, Braintree is still part of PayPal.
- Business type: payment processing
- Purchase price: approximately US$890 million
- Purchase Date: November 12, 2015
Founded in 2001, Xoom is an international payment processing company that allows users to send money, pay bills, top up mobile phones, and complete other tasks for friends and family in other countries.At the time of the transaction, Xoom had more than 1.3 million active U.S. customers who used its platform to send a total of $7 billion in international remittances each year.PayPal’s acquisition of Xoom helps it expand into new markets around the world, including establishing its remittance business.
Super Wallet System
- Business Type: Global Payment
- Purchase price: about 400 million U.S. dollars
- Purchase Date: November 15, 2018
Founded in 2000, Hyperwallet is a global payment company that provides a seamless way for small organizations to distribute funds to payees.Hyperwallet’s unique platform allows companies to send and receive payments in any currency to almost every country in the world.PayPal’s acquisition of Hyperwallet is a key move in the company’s continuous efforts to streamline and enhance its e-commerce platform products.
PayPal diversity and inclusive transparency
As part of our efforts to raise awareness of the importance of company diversity, we emphasized the transparency of PayPal’s commitment to diversity, inclusion, and social responsibility. The figure below illustrates how PayPal reports the diversity of its management and workforce. This indicates whether PayPal has disclosed data on the diversity of its board of directors, top management, general management and all employees on various indicators. We have used ✔ for transparency.
|PayPal Diversity and Inclusion Report|
|Race||gender||ability||Veteran status||Sexual orientation|
|Board of Directors|
|Integrated management||✔ (U.S. only)||✔|
|employee||✔ (U.S. only)||✔|