It has been an eventful week in ecommerce. Alibaba Group acquired China’s Dropbox-like service Kanbox on Wednesday, and now EBay has officially confirmed its acquisition of Chicago-based startup Braintree to bolster its PayPal division, which introduced a small business loan program this week.
- A few days after rumors began swirling about PayPal and Braintree coming to an agreement around an acquisition, the companies confirmed the deal on Thursday. EBay, PayPal’s parent company, acquired Braintree for $800 million dollars to bolster its mobile payments capabilities. Venmo, Braintree’s mobile application that allows people to pay each other using their mobile devices is part of the acquisition and will help grow the mobile-side of its business. The deal is expected to close in the fourth quarter.
- On Wednesday, PayPal launched a new program to help its merchants borrow money for their small businesses. PayPal Working Capital is offering 90,000 of its merchants the option to borrow as much as 8 percent of their annual PayPal volume up to a maximum of $20,000, according to a report by Forbes.