UPDATED 22:10 EDT / JUNE 19 2018

APPS

PayPal acquires funds disbursement company Hyperwallet for $400M

PayPal Holdings Inc. is continuing on its acquisition spree, buying San Francisco-based funds disbursement company Hyperwallet Systems Inc. today for about $400 million in cash.

Founded in 2000, Hyperwallet offers a financial technology payments platform that allows companies to disburse payments such as wages, refunds and dividends to more than 200 countries in local currencies via multiple platforms.

The company provides a range of payment capabilities, integrated financial tools, tax reporting solutions and small business support services with support for financial compliance anti-money-laundering controls. Payments can be delivered via prepaid cards, global bank deposits, cash pickups, check delivery services and, perhaps not surprisingly given its new owner, PayPal.

For PayPal, the acquisition gives it an improved ability to provide an integrated suite of payment solutions to e-commerce platforms and marketplaces around the world.

“E-commerce platforms and marketplaces are leveling the retail playing field by connecting buyers who have specific needs with groups of sellers that can meet them,” Bill Ready, chief operating officer at PayPal, said in a statement. “Merchants and service providers who use these platforms want quick, efficient, flexible and secure access to their earnings, whenever and wherever they need them. By acquiring Hyperwallet, we will strengthen our ability to provide an integrated end-to-end solution to help e-commerce platforms and marketplaces — however large or small — leverage world-class payout capabilities in over 200 markets.”

Hypermarket adds to a growing list of companies PayPal has snapped up since it was spun off as an independent company from eBay Inc. in 2014. Starting with mobile payments firm Paydiant Inc. in 2015, PayPal then acquired offline bill payments startup TIO Networks Corp. in February 2017, followed more recently by Swedish mobile payments startup iZettle Inc. for $2.2 billion and artificial intelligence startup Jetlore Inc. for an undisclosed sum, both in May.

It’s not known how much Hypermarket raised prior to its acquisition, but according to Crunchbase, the company took an undisclosed round of funding in 2014 from Primus Capital and Raymond James in June 2014.

Image: PayPal

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