Digital payments platform PayPal has completed its previously announced $400m acquisition of global payout platform Hyperwallet.
PayPal expects the acquisition of Hyperwallet to consolidate its payout capabilities and improve its ability to offer an integrated suite of payment solutions to ecommerce platforms and marketplaces across the globe.
Hyperwallet is engaged in providing solutions to organizations for distributing funds to their global sellers, contractors, content producers, suppliers and resellers. The company has offices in Austin, San Francisco, London, Sydney and Vancouver.
PayPal entered into the deal to acquire the payout platform in June 2018. With the closing of the transaction, Hyperwallet CEO Brent Warrington has joined PayPal and will continue to head the payout platform.
Warrington will report to PayPal’s division Braintree VP and general manager Juan Benitez.
Warrington said: “I am proud of everything we’ve built at Hyperwallet – from humble beginnings as a Vancouver-based startup to a global, world-class payouts company with an unwavering dedication to our customers.
“The combination of PayPal and Hyperwallet creates a powerful set of tools and services to help our customers pay the planet.”
The addition of Hyperwallet means that both PayPal and Braintree merchants will have access to a comprehensive payments solution, including Hyperwallet’s localized, multi-currency payment distribution capabilities in over 200 markets.
The merchants will now get various disbursement options, including prepaid card, bank account, cash pickup, debit card, check and PayPal.
PayPal chief operating officer Bill Ready said: “Ecommerce platforms and marketplaces have been focused on creating frictionless experiences for sellers to accept payments from buyers – an area where PayPal and Braintree have really innovated, powering many of the world’s largest and most noteworthy marketplaces.
“We look forward to working with Brent and the Hyperwallet team to strengthen our platform with advanced payout capabilities as we build on our aspiration to serve the digital economy with a full operating system for commerce.”
In late September, PayPal completed acquisition of financial technology company iZettle in a deal worth around $2.2bn. Based in Sweden, iZettle provides payment and commerce solutions, which include payments, point of sales, funding and partners applications.