PayPal to acquire Hyperwallet

PayPal Holdings Inc. (PYPL) has agreed to acquire Hyperwallet, a firm that specializes in payouts to sellers, for $400 million. The transaction is expected to close in the fourth quarter of 2018, subject to regulatory approvals. Hyperwallet offers services in 200 countries and has several popular companies as customers including vacation rental marketplace HomeAway and travel company Expedia Inc (EXPE). Hyperwallet is backed by financial firms Primus Capital and Raymond James.

PayPal considers Hyperwallet to a good fit for its marketplace payouts business and believes this deal will help boost its capabilities in this area. Based on data from the Internet Retailer, marketplace sales comprised over half of global online retail sales last year. The deal with Hyperwallet will also give PayPal access to a meaningful client base.

Hyperwallet offers services in 200 countries and has several popular companies like Expedia as customers

Following the deal, PayPal will have multi-currency payment capabilities in a large number of markets with multiple payment options. The acquisition will strengthen PayPal’s business and help expand its operations significantly.

Last month PayPal shelled out $2.2 billion to acquire fintech firm iZettle in its biggest acquisition to date. The company believes this is a good time to find acquisitions that complement its business and provide opportunities for growth and expansion.

Related: PayPal agrees to buy iZettle for $2.2 billion in the biggest acquisition till date