PayPal is shelling out $400 million in cash for this 18-year-old company that helps gig workers get paid

PayPal  announced today that it
PayPal announced today that it's paying $400 million in cash for Hyperwallet,  

PayPal announced today that it's paying $400 million in cash for Hyperwallet, an 18-year-old, Bay Area-based company that helps people and small businesses receive payments for products and services that they sell, including through the vacation rental platform HomeAway and Rodan & Fields, the multi-level marketing company that specializes in skincare products and employs an army of consultants to sell toners and the like.

Hyperwallet interlinks cash networks, card schemes, and mobile money services with domestic ACH networks around the world to enable what it characterizes as "disruptively priced" and, as crucially, compliant mass payments.

It isn't clear as of this writing how much money Hyperwallet had raised over the years, though the WSJ notes that Primus Capital, the private equity firm, is a major shareholder.

According to Crunchbase, the company has also received funding from the financial services company Raymond James.

Hyperwallet was founded by Lisa Shields, an MIT-trained engineer who originally launched the company in Vancouver, where she last year founded a second company called FI.SPAN, which is an API management platform that aims to allow banks to quickly deploy new business banking products. Shields seemingly keeps a low profile compared with many founders. When she was presented with an Entrepreneur of the Year award by EY in 2015, she said, "I am honored and humbled, not to mention surprised." (Hyperwallet has been led since 2015 by CEO Brent Warrington, who previously served as CEO of a company called SecureNet Payment Systems that was acquired.)

As for why PayPal acquired it, it says it enhances its ability to provide payment solutions to e-commerce platforms and marketplaces around the world, noting in a release about the deal that marketplace sales accounted for more than 50 percent of global online retail sales last year.

The acquisition is just the latest in a long string of companies that PayPal has acquired over the years. Just last month, it shelled out a whopping $2.2 billion to acquire the European payments company iZettle in an all-cash deal that's believed to be PayPal's biggest.


More Related News

Sell-Side Debates First Solar
Sell-Side Debates First Solar's Costs, Gross Margins

Raymond James analyst Pavel Molchanov maintained a Market Perform rating on First Solar. Credit Suisse analyst Michael Weinstein reiterated a Neutral rating and $53 price target. First Solar's initial 2019 guidance has engendered two structural concerns: a lack of significant leverage to the non-utility photovoltaic growth curve and an unclear long-term opportunity for the film's economics and market share relative to crystalline PV, Raymond James analyst Molchanov said in a Wednesday note.

Wall Street Urgently Pushes Its D.C. Wish List as Time Runs Out
Wall Street Urgently Pushes Its D.C. Wish List as Time Runs Out

With less than two weeks for Congress to cut a deal to fund federal agencies, financial firms and their allies on Capitol Hill have begun the annual ritual of trying to attach goodies to must-pass legislation that could benefit banks, asset managers and private equity firms. Financial firms are seeking tweaks to the Dodd-Frank Act including the widely reviled Volcker Rule as well as steps to make it easier for new companies to go public. With partisan fights over whether the broader spending legislation will include high-profile items like President Donald Trump's requested $5 billion to fund a wall on the U.S.-Mexico border, the financial services industry isn't optimistic there will...

Bitcoin-Friendly Cash App Tops PayPal in Google Play Store
Bitcoin-Friendly Cash App Tops PayPal in Google Play Store

Square's Cash App has achieved a key milestone on the road to mainstreaming bitcoin usage by becoming the most popular app in the finance category on the U.S. Google Play Store ahead of PayPal. The app, which has spent much of the past year gaining tremendous amounts of ground within the millennial market segment is

Why Symantec's Stock Rose 22% in November
Why Symantec's Stock Rose 22% in November

The data-security veteran was reportedly the target of a private equity buyout idea. 30 days later, that's still just a rumor -- but the stock chart never got that memo.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Economy

Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.