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EcommerceBytes-NewsFlash, Number 2689 - December 06, 2011 - ISSN 1539-5065    3 of 3

PayPal Competitor Paymate Sells Australian Unit

By Ina Steiner
EcommerceBytes.com
December 06, 2011




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It is business as usual for eBay sellers in the U.S. who use online payment service Paymate, according to the company's CEO Greg Lewis, after he revealed on Monday the company had sold its Australian business to FlexiGroup. ACT Merchant Services, which merged with Paymate in May, sold the business of Paymate Pty Limited to FlexiGroup.

Lewis said the sale of the Australian and New Zealand part of the business will give Paymate USA operating capital. While it's not certain yet if Paymate USA will continue to operate using the Paymate name (it sold the rights to Paymate Global), the sale of the Australian business will have no effect on U.S. operations. Lewis, who joined Paymate this year, said sellers were not affected by the sale, but he said he was not ready to disclose future plans until the sale was completed.

Dilip Rao originally founded Paymate in Australia and moved the company's headquarters to California in 2009, appointing Garrett Gafke President and CEO.

FlexiGroup did not disclose the amount it paid for the assets of Paymate's Australian, New Zealand and Asian business, but said it was not a material sum and it would be funded from existing cash reserves and by deferred equity consideration.

In a press release on Monday, FlexiGroup said there were over 300,000 merchants trading online in Australia and said credit cards and PayPal accounted for 91 percent of the country's online market. It said Paymate was one of only three integrated payment options on eBay Australia and estimated Paymate's eBay penetration at less than 0.5 percent.

Andrew Pipolo, who now manages FlexiGroup's online initiative, was formerly Managing Director of PayPal Australia.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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