Online retailer eBay is to acquire online payment platform Braintree for about $800m in efforts to develop its online payments service PayPal business.
The deal will provide eBay with access to Braintree's mobile application Venmo, allowing consumers to make payments on mobile devices.
It should also expand eBay's reach on mobile devices and attract customers who don't have PayPal account.
eBay president and CEO John Donahoe said:"Together, we expect that PayPal and Braintree also will accelerate our leadership in supporting developers who are creating innovative solutions for next generation commerce startups," Donahoe said.
About 40% of eBay's revenue came from PayPal in 2012 and the company is expecting that mobile payment volume will be more than $20bn this year.
Braintree provides merchant accounts, billing and credit card storage services to more than 40 million consumers worldwide.
Once the deal is closed, Braintree will operate as a separate service in PayPal under the leadership of Bill Ready, who will report to David Marcus, president of PayPal.
Braintree CEO Bill Ready said:"Our current customers and developer community can expect the same level of support and partnership they've always enjoyed, coupled with more resources," Ready said.
John Donahoe said: "Bill Ready and his team add complementary talent and technology that we believe will help accelerate PayPal's global leadership in mobile payments.
The deal will not affect the management team and employees of Braintree.
The transaction, which is subject to regulatory approvals, is expected to close in the fourth-quarter of 2013.