If you’ve purchased online and paid for your purchases through PayPal, you’ll be interested to learn that Ebay’s PayPal has bought Chicago-based payments gateway Braintree in a cash deal worth $800 million. Braintree was on sale with Square and PayPal both in acquisition discussions for the company.

The idea is to combine Braintree with eBay’s PayPal payment operation and eBay President and CEO, John Donahoe is reported to have stated “Braintree is a perfect fit with PayPal… Bill Ready(CEO of Braintree) and his team add complementary talent and technology that we believe will help accelerate PayPal’s global leadership in mobile payments. 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.”

The purchase gives eBay access to Braintree’s Venmo. Venmo is an app that allows consumers to make payments on smartphones and tablets, an area in which EBay wants to be more involved.

Shares of EBay, 40 percent of whose revenue last year came from PayPal, rose as much as 4.4 percent on the Nasdaq today, September 26.

PayPal, has 120 million users and has dominated online payment services for about a decade. Its growth has been only moderate in recent years as a result of increased competition on mobile devices from smaller but more versatile rivals.

Braintree clients include online hotel booking service Airbnb and the online restaurant booking service OpenTable Inc. The expectation is to process about $12 billion in payment volume this year.

Braintree, backed by venture capital firm Accel Partners among others, provides merchant accounts, payment gateways, and billing and credit card storage.

It’s a corporate shot-in-the-arm with the purchase of Braintree and the deal brings on fresh talent to rejuvenate innovation.

Paypal acquired IronPearl this past spring and could take on Stripe in acquiring more business in the area of online checkouts.

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