I'm amused that photo-sharing companies are more valuable than CC payment processing companies that actually generate revenue.
PayPal Acquires Braintree for $800M
141–150 of 187 posts
Re: PayPal Acquires Braintree for $800M
#142congrats to the team. building payments is hard (braintree has been at it since 2007) and it's great to see a successful exit for a solid team & company
Re: PayPal Acquires Braintree for $800M
#143Earlier quoted context omitted.
Where did you hear that Braintree is going to a 100EUR monthly minimum?
https://www.braintreepayments.com/ "Interchange +.9% + €.10 per transaction. €100 per month minimum • Everything included • No additional fees". This is probably shown only to EU visitors. I also confirmed this with braintreepayments support and their reply was: "The €100 is a monthly minimum based on a per transaction fee of €0.10. For example, if your first month of transaction charges are €68, you would need to pa…
> Extremely annoyed by seeing this minimum applied only to the EU countries!
I would take a 100€ minimum over a 320% increase in transaction fees (2.9% vs. 0.9%) and a 130% increase in fixed per-transaction fees (0.10€ vs. $0.30 at current exchange rate) any day of the week.
Re: PayPal Acquires Braintree for $800M
#144What is the rational behind this move? From my perspective, Braintree had a good brand ( compared to paypal), locked-in customer base and sizeable cashflow (my conjecture based on their fees). Incumbents and first movers in this industry have a huge advantage over newcomers - so they were not as much at risk from newer start-ups. They were also risk averse in how they accepted new customers . Could they not have rest…
Braintree's 2011 revenue (from their Inc 5000 listing) was $9.9M. A $800M buyout is the equivalent of 80 years of future revenue. That's a lot of cash to turn down.
2011 is almost two years ago.
Re: PayPal Acquires Braintree for $800M
#145Boo! Paypal sucks and is a terrible company. I only use it when I'm forced to because I do not have access to international credit cards here in South America (where I live). Too bad.
I feel the pain!
I'm building a iPad POS and finally forget about provide credit card payments for my latin-america customers (except using paypal).
Re: PayPal Acquires Braintree for $800M
#146Earlier quoted context omitted.
> On the other hand you can sign up and begin using paypal in minutes. Yes indeedy by deferring the "very tedious verification" process until it massively impacts your business and PP has you by the balls.
If you're suggesting that Ally is an alternative to PP, that's nuts. I can see why businesses might be attracted to Ally over PP because of better customer service, but better customer service won't matter if you're not getting the volume of business that may be driven by PayPal.
I think he's suggesting that he can "Show me a company working as a purely Internet bank..." without pissed off customers.
Re: PayPal Acquires Braintree for $800M
#147Earlier quoted context omitted.
https://www.braintreepayments.com/ "Interchange +.9% + €.10 per transaction. €100 per month minimum • Everything included • No additional fees". This is probably shown only to EU visitors. I also confirmed this with braintreepayments support and their reply was: "The €100 is a monthly minimum based on a per transaction fee of €0.10. For example, if your first month of transaction charges are €68, you would need to pa…
> Extremely annoyed by seeing this minimum applied only to the EU countries! I would take a 100€ minimum over a 320% increase in transaction fees (2.9% vs. 0.9%) and a 130% increase in fixed per-transaction fees (0.10€ vs. $0.30 at current exchange rate) any day of the week.
Unfortunately it's interchange + 0.9%, not just 0.9%. Interchange ranges ~1.2-2% so the difference gets much smaller.
With a 100€ minimum the 10c transaction fee becomes 10c only after the first 1000 transactions (1000*0.1=100). If ignoring the variable part of the fee (%) then the break-even for this 10c vs 30c transaction comparison is at ~333 transactions. For a new company it takes a long time to get the first 333 monthly paying customers.
Re: PayPal Acquires Braintree for $800M
#148I'm amused that photo-sharing companies are more valuable than CC payment processing companies that actually generate revenue.
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Re: PayPal Acquires Braintree for $800M
#149We were in the middle of migrating from PayPal to Braintree for a marketplace solution. Anyone have documentation or comments on Stripe vs. Balancedpayments.com vs. Braintree for marketplaces?
Re: PayPal Acquires Braintree for $800M
#150We were just about to add payments to our site, and Braintree was high on the list to checkout. Any other suggestions in addition to Stripe? -edit- This seems like a good list: http://gatewayindex.spreedly.com
If you do at least $3-5k/month in transactions, a real merchant account from a bank/ISO/MSP. I pay $0.05 + 0.04% markup over interchange. Even after the monthly and gateway (Authorize.net) fees, that's around 2%, compared to Stripe's 2.9% or PayPal's 2.2% (I qualify for their merchant rate discount). Amex cards are the only ones I pay more for by not doing a flat rate. [By coding against Spreedly, it's possible to do…
Don't discount everything Paypal does to buffer you as a merchant from the effects of fraud. I think some people look at raw transaction fees and don't realize how much extra shit they will have to deal with if they're going to process credit cards directly. There is definitely value added by Paypal in this area, and I think it's easily worth more than saving 0.2% on $3-5k in payments per month.