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PayPal Acquires Braintree for $800M

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Re: PayPal Acquires Braintree for $800M

#171

Post by pjg »

timdorr wrote: post #153
Ixiaus wrote: post #55

Boy, everyone is so negative about the purchase on here! Braintree's customer base is far too large at this point for PayPal to just shut it down ; that would be terrible PR because Braintree is critical to many businesses at this point. It's also not that easy to just go rip out one processor for another on a huge legacy code base. PayPal would be making things worse for themselves if they did that and this purchase…

They've bought payment providers in the past. The last big one was Verisign Payments and they've kept that running as a separate product since 2005! https://www.paypal.com/cgi-bin/webscr?cmd=xpt/Marketing/gene... I also doubt they'll shut down Braintree or roll it into the main product.

The key to note about Verisign purchase is that of the appx. 1/2 of $145B/year volume that paypal processes is through the verisign gateway which is not paypal branded. Verisign payments are about half of total so it was a good acquisition

Re: PayPal Acquires Braintree for $800M

#172

Post by pjg »

AhtiK wrote: post #65
Ixiaus wrote: post #55

Boy, everyone is so negative about the purchase on here! Braintree's customer base is far too large at this point for PayPal to just shut it down ; that would be terrible PR because Braintree is critical to many businesses at this point. It's also not that easy to just go rip out one processor for another on a huge legacy code base. PayPal would be making things worse for themselves if they did that and this purchase…

Braintree processes ~11b/year. Paypal ~$145b/y. This year Paypal expects to process on mobile twice as much as Braintree is processing as a whole. The margins in this business are very small, .9% transaction fees on 11b are not that huge. Where Braintree misses the opportunity is gathering better for young startups that are in the early growth phase. 100 EUR monthly minimum on .10c/trx fees is not easy to digest in t…

FYI: Of the total Paypal is processing i.e. ~145B/year only half is Paypal branded i.e. appx $70-80B/year, the rest of it goes through Verisign gateway

Re: PayPal Acquires Braintree for $800M

#173

Post by ennuihenry »

Judson wrote: post #99

I'm surprised that nobody has mentioned Venmo, which was acquired by Braintree. Its no secret that PayPal wants to dominate mobile payments - yet, most people don't even know that you can send money to other people for free using PayPal (an essential component to mobile person to person payments).

This article's title is interesting given the acquisition: http://pandodaily.com/2012/08/16/braintree-buys-venmo-for-26...

Re: PayPal Acquires Braintree for $800M

#174

Post by droopyEyelids »

Osiris wrote: post #129

I'm curious if PayPal will begin to shift to make accepting PayPal requests as simple as credit card. I suppose the problem with that is the need to supply a password, but they could change things in PayPal to use something like Google Authenticator to use a 6-digit pin, or perhaps a separate purchase-only password that cannot log into the account. It would be great to be able to use the same API to accept credit car…

Have you heard of Venmo Touch? It allows payments with one click/tap so long as you're "cookied" with a Venmo token.

Re: PayPal Acquires Braintree for $800M

#175

Post by Karunamon »

RSASecure wrote: post #154
Karunamon wrote: post #96

Earlier quoted context omitted.

I don't think the problem with Paypal are the payment blocks with no notification, the problem is their complete and utter refusal to talk to the customer about it . They have anti-fraud systems. Fine. Fucking let me talk to someone who can put their fingers on the keyboard and get it sorted out without a front page article on Hacker News, Reddit, and The Consumerist to shame them into action.

PayPal has been trying hard to change this image. David Marcus, who took the helm, has been shifting focus on customer satisfaction. Here is an interesting article on David Marcus: http://pandodaily.com/2013/08/12/if-its-not-broke-break-it-h...

Mm, I don't put much stock in that. Basically, talk is cheap. Marcus posted a lot of flowery language and PayPal's activity does not appear to have meaningfully changed.

The MailPile thing happened at the beginning of this month - the fact that this can happen at all, and, as usual, nothing was fixed until that bad press started to roll in, points to a systemic problem and culture at Paypal that just changing a CEO isn't going to fix in a reasonable amount of time.

Re: PayPal Acquires Braintree for $800M

#178

Post by jfoster »

doubt_me wrote: post #82
jfoster wrote: post #46

Earlier quoted context omitted.

PayPal likely purchased them because they aspire to be more like Braintree.

Is there any evidence of this? Besides 800m in cash

David Marcus has previously acknowledged that PayPal needs to improve: http://venturebeat.com/2012/09/09/david-marcus-paypal-custom...

Re: PayPal Acquires Braintree for $800M

#179

Post by jfoster »

ihsw wrote: post #50
jfoster wrote: post #46

Earlier quoted context omitted.

PayPal likely purchased them because they aspire to be more like Braintree.

Few things could qualify so wholeheartedly as a crock of shit, but your statement is one of them.

I should've supported my assertion with this: http://venturebeat.com/2012/09/09/david-marcus-paypal-custom...

If you still think I'm wrong, please be constructive about it.

Re: PayPal Acquires Braintree for $800M

#180

Post by rehabindian »

RSASecure wrote: post #154
Karunamon wrote: post #96

Earlier quoted context omitted.

I don't think the problem with Paypal are the payment blocks with no notification, the problem is their complete and utter refusal to talk to the customer about it . They have anti-fraud systems. Fine. Fucking let me talk to someone who can put their fingers on the keyboard and get it sorted out without a front page article on Hacker News, Reddit, and The Consumerist to shame them into action.

PayPal has been trying hard to change this image. David Marcus, who took the helm, has been shifting focus on customer satisfaction. Here is an interesting article on David Marcus: http://pandodaily.com/2013/08/12/if-its-not-broke-break-it-h...

I can tell you from personal experience and experience of 25-30 others here.. Its a smoke screen. The last few people who tried to do what David says to media have either been canned or now serving in timeout zone. Again the President means well but culture internally is much worse. Its a company filled with people whose skills are way past their prime trying to hold on to what little mileage left. David wants things to change but the middle layer won't. More often than not they are the ones who make calls on day to day operations. Many senior execs who tried to get shit done were moved out by these politicians. Even today diplomacy/politicking is valued in the company over talent or Data or logic/reasoning.

as far as topic at hand is concerned, MR from Braintree will be working closely with DM and directly. So expect only good things. Buying Braintree is a business play. (Just check out their numbers and clientele). PayPal can try to get clients like AirBnB or Uber but those startups would try every other bush before PayPal.

Hope this helps

P.S: I work for PayPal and probably one of the strong proponents of it. The above opinions are purely mine. and No i have not been canned or put in a timeout box.. yet!

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