PayPal is reportedly inching closer to securing a deal to buy Braintree Payments Solutions.
Sources close to the negotiations tell the Wall Street Journal that an agreement would help propel the online payments giant “into the center of the burgeoning mobile commerce market.”
The deal for Braintree would give PayPal access to data and lucrative transaction fees from Braintree’s expanding network, which currently processes more than $10 billion annually for companies like OpenTable, Uber Technologies and Airbnb.
Braintree, in short, has done well for itself by charging merchants a 2.9% commission and 30-cent transaction fee.
As of press time, eBay and Braintree were silent on the rumors. Nonetheless, the financial incentive at stake speaks volumes about why the two companies may team up.
The WSJ cites the latest Gartner projections to reiterate that the mobile-payments market is on pace to grow by 31% this year to $235.4 billion.
The market is expected to increase by more than three-fold by 2017.