PayPal is acquiring a company called Hyperwallet, which it calls “a leading global payout platform.” Or as the company says on its website, “Go global, pay local.”
While it’s relatively easy to pay employees, service providers, and others in your own domestic market, it’s more challenging when they’re located outside of your country and have different payment preferences. Hyperwallet helps ecommerce platforms and marketplaces manage those payouts – for example, marketplaces that need to disburse funds to international sellers.
Hyperwallet also reduces a company’s compliance risk and handles anti-money laundering reporting.
PayPal executive Bill Ready said Hyperwallet provides organizations with a “frictionless, transparent, and reliable way to distribute funds to their global sellers, content producers, contractors, suppliers and resellers.”
In today’s announcement, he wrote, “By acquiring Hyperwallet, we will be able to provide PayPal and Braintree merchants with access to a comprehensive payments solution, including Hyperwallet’s localized, multi-currency payment distribution capabilities in more than 200 markets with numerous disbursement options, including prepaid card, bank account, debit card, cash pickup, check and PayPal.”
The transaction is expected to close in the fourth quarter of 2018 subject to customary closing conditions, including regulatory approvals.
Press release follows:
PayPal Holdings, Inc. announced today that it has agreed to acquire Hyperwallet, a leading global payout platform, for $400 million in cash, subject to certain adjustments. The acquisition of Hyperwallet enhances PayPal’s payout capabilities, improving the company’s ability to provide an integrated suite of payment solutions to ecommerce platforms and marketplaces around the world. According to Internet Retailer, marketplace sales accounted for more than 50% of global online retail sales in 2017.
“Ecommerce platforms and marketplaces are leveling the retail playing field by connecting buyers who have specific needs with groups of sellers that can meet them,” said Bill Ready, chief operating officer, PayPal. “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 ecommerce platforms and marketplaces — however large or small — leverage world-class payout capabilities in over 200 markets.”
Upon closing, PayPal and Braintree merchants will gain localized, multi-currency payment distribution capabilities in more than 200 markets with numerous disbursement options, including prepaid card, bank account, debit card, cash pickup, check and PayPal.
“We are thrilled to be joining forces with a powerhouse like PayPal,” said Brent Warrington, CEO, Hyperwallet. “Combining Hyperwallet’s advanced payout capabilities with PayPal’s scale will bring increased value to both Hyperwallet’s and PayPal’s customers. This is an outstanding opportunity to supercharge Hyperwallet’s growth and further our mission to pay the planet.”
The transaction is expected to close in the fourth quarter of 2018. The completion of this transaction is subject to customary closing conditions, including regulatory approvals.
Perella Weinberg Partners LP is acting as sole financial adviser to PayPal, and Skadden, Arps, Slate, Meagher & Flom LLP is acting as its legal adviser with regard to the transaction. Raymond James & Associates, Inc. is acting as sole financial adviser to Hyperwallet, while Goodwin Procter LLP is acting as its legal adviser.
SOURCE: PayPal Press Release