The Strategist

PayPal to spend up to $ 3 billion a year on M&A


07/09/2018 - 15:46



PayPal Holdings Inc is looking for new acquisition options after the recent takeover of iZettle, which became the largest deal in the history of the American payment company, Reuters reports.



OFFICIAL LEWEB PHOTOS via flickr
OFFICIAL LEWEB PHOTOS via flickr
"We have a healthy balance sheet and we are ready to work on buying more companies," said PayPal President and CEO Dan Schulman in an interview with the German newspaper Handelsblatt.

PayPal is ready to invest up to $ 3 billion a year in acquisitions that will allow it to get certain opportunities, added Schulman.

"I do not rule out that we will take on a larger deal if it will do us good," he said.

In May, PayPal bought a Swedish fintech start-up iZettle for $ 2.2 billion. The deal is expected to help PayPal compete more successfully with Square Inc., which offers payment services for small businesses in the US. The Swedish start-up is often called the European version of Square.

The deal with iZettle will also help PayPal slightly offset the decline in cooperation with the online auction eBay, which was one of the main suppliers of customers and revenue for PayPal. At the beginning of the year, eBay announced a gradual transition to the Dutch Adyen platform.

PayPal has been the main eBay payment service for 15 years. The companies split in 2015, but they are still bound by a cooperation agreement, which expires only in 2020.

After the separation from eBay, PayPal moved from primarily processing online transactions to its parent company to offer a set of digital payment services.

At the moment, PayPal's goal is to provide a comprehensive offer for retailers who want to conduct sales both in traditional stores and online, said the company's CEO in an interview with The Wall Street Journal.

source: wsj.com




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