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Set up in 1998, PayPal went public in an IPO in 2002. In the same year, it was taken over by eBay, before being spun off as an independent company once again in 2014.
As a brand, PayPal is hugely well known — but there are also a pretty impressive range of companies which fall under the PayPal parent organization and operate independently.
This guide answers the question — what does PayPal own? — and as a bonus we’ll also introduce the Wise account as a cheaper way to send and receive money overseas.
Let’s start with an overview of the PayPal subsidiaries list. We’ll dive into each one later, looking at what they do, when PayPal acquired them, and what they paid.
Here’s the full list of all the companies owned by PayPal¹:
Let’s look in a little more detail at what subsidiaries sit under the PayPal umbrella.
PayPal Credit was acquired by PayPal as Bill Me later in 2008. It was a buy now, pay later service which lets people shop and split the bill into several payments for more flexibility.
Over time, further credit options have been added as the company has developed under the PayPal banner.
PayPal Credit² — formerly Bill Me later | |
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What type of business is it? | Buy now, pay later services |
How much did PayPal pay? | 820 million USD in cash, 125 million USD in options |
When was it acquired? | 2008 |
Swift financial offers business loans and funding solutions, and was acquired by PayPal to allow the expansion of the PayPal Working Capital offer.
Swift can offer business loans of up to 500,000 USD.
Swift Financial³ | |
---|---|
What type of business is it? | Business funding solutions |
How much did PayPal pay? | Reputed to have paid 183 million USD |
When was it acquired? | 2017 |
Braintree offers payment solutions which let merchants take payment through PayPal, Venmo, cards and digital wallets.
Braintree’s payment technology makes it easy for customers to pay in a range of ways, online and on mobile sites for example.
It’s a full-stack payments platform which means merchants don’t need to involve a separate payments gateway to accept funds.
Braintree⁴ | |
---|---|
What type of business is it? | Payment solutions |
How much did PayPal pay? | 800 million USD (joint purchase with Venmo) |
When was it acquired? | 2013 |
At the same time as PayPal acquired Braintree it also bought Venmo. Famous for offering instant peer to peer payments from mobile phones, Venmo also now offers merchant payment services within the US.
Venmo is known for offering a social side to splitting bills or paying friends, with the option to add messages and emojis when you pay. It’s currently only available in the US.
Venmo⁵ | |
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What type of business is it? | Peer to peer and merchant payments |
How much did PayPal pay? | 800 million USD (joint purchase with Braintree) |
When was it acquired? | 2013 |
Xoom offers international transfers which can be sent around the world, to bank accounts or for cash collection through an agent network. In some countries you can even have cash delivered to your recipient’s door.
Xoom’s ability to send payments for cash collection makes this an attractive service for people who need to get money to someone without access to a bank account, supplementing PayPal’s other peer to peer payment services.
Xoom⁶ | |
---|---|
What type of business is it? | International transfers |
How much did PayPal pay? | 890 million USD |
When was it acquired? | 2015 |
Zettle — which was previously called iZettle — offers payment solutions for ecommerce and physical sellers across a range of European countries.
Besides helping integrate payment solutions to websites, you can also get a full payment terminal or bank card machine to accept physical payments. This was PayPal’s highest value acquisition at the time it was completed.
Zettle⁷ | |
---|---|
What type of business is it? | Payment solutions |
How much did PayPal pay? | 2.2 billion USD |
When was it acquired? | 2018 |
Simility services include merchant solutions to stop fraud while giving good customers a better experience when shopping online. There are also solutions for financial service organizations looking to detect and reduce fraud.
As a giant in ecommerce and online transactions, it makes sense for PayPal to take an interest in a company offering products to make ecommerce safer — building the capabilities of both PayPal and Simility at the same time.
Simility⁸ | |
---|---|
What type of business is it? | Fraud prevention |
How much did PayPal pay? | 120 million USD |
When was it acquired? | 2018 |
Chargehound lets merchants reduce chargeback fraud by automating online dispute processes. Services are mainly automated but more complex cases can be reviewed manually, which allows companies to save time on straightforward disputes while resolving more complex ones with a human touch.
PayPal’s decision here reflects the fact that ecommerce sales are continuing to grow, but merchants need to protect their margins to remain competitive — something reducing fraud can help with.
Chargehound⁹ | |
---|---|
What type of business is it? | Dispute automation and fraud prevention |
How much did PayPal pay? | Undisclosed |
When was it acquired? | 2021 |
Happy Returns offers an easy return process for customers shopping online which can also save companies money. Customers can take unwanted items to a network of Return Bars — physical locations where returns are aggregated and passed back to merchants.
PayPal merchants can offer Happy Returns as a return option for free, allowing them to compete against large ecommerce sites which offer their own physical return points.
Happy Returns¹⁰ | |
---|---|
What type of business is it? | Returns service |
How much did PayPal pay? | Undisclosed |
When was it acquired? | 2021 |
Honey is an online service which you can use to automatically detect coupons and discounts when you shop online. There’s also a Honey loyalty card which lets you earn gift cards to spend later.
At the time of the purchase, PayPal explained that it was intended to improve the customer experience for people shopping online, and also improve conversions for merchants.
Honey¹¹ | |
---|---|
What type of business is it? | Cashback and discount service |
How much did PayPal pay? | Approximately 4 billion USD |
When was it acquired? | 2020 |
Hyperwallet offers mass payment solutions for businesses big and small, which let business owners save time on administration. Services can be used for payroll, sending funds to freelancers or claimants and more.
This transaction was part of PayPal’s push to provide an integrated suite of payment solutions to ecommerce platforms and marketplaces around the world.
Hyperwallet¹² | |
---|---|
What type of business is it? | Mass payment solutions |
How much did PayPal pay? | Approximately 400 million USD |
When was it acquired? | 2018 |
Paidy is a two-sided payment and buy now, pay later service operating in Japan. PayPal acquired Paidy in 2021 to expand its capabilities as the global pandemic created more demand for online payment solutions.
At the time of the acquisition PayPal said the purchase would strengthen its position in Japan — the 3rd largest ecommerce market in the world.
Paidy¹³ | |
---|---|
What type of business is it? | Buy now, pay later |
How much did PayPal pay? | 2.7 billion USD |
When was it acquired? | 2021 |
PayPal — and the PayPal subsidiaries within the group — offer a broad range of payment and ecommerce solutions. But they’re not necessarily the best bet when you shop or send money internationally.
For a better way to send payments overseas check out Wise — and for smart ways to shop online with international ecommerce sites, take a look at the Wise multi-currency account.
Wise is a specialist in currency conversion and online payments, using the mid-market exchange rate with low, transparent fees. That means you can save compared to your bank when you use Wise — and, perhaps, more when using other popular money transfer providers.
Open your Wise account online or in the Wise app for free and get started sending and spending overseas for less, today.
Create a free Wise
account in minutes 🚀
To finish up, let’s take a look at some common questions about PayPal’s subsidiary companies.
PayPal is an independent company, although it was for a time part of the eBay group.
Today, PayPal is independent and floated on the Nasdaq stock exchange.
PayPal initially went through IPO in 2002 — now, PayPal is publicly floated and listed as PYPL.
PayPal does not own Square.
PayPal does not own Cash App.
So there you have it — a full walk through all the companies in the PayPal parent group. Unsurprisingly, PayPal is a huge organization with an impressive range of services offered between its network of subsidiaries.
But if you’re looking for international transfers and ways to manage your money across currencies, don’t forget to check out the Wise account for lower overall costs and a better exchange rate.
Sources:
Sources checked on 07.25.2022
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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