Braintree (company)

Braintree
Subsidiary of PayPal
Founded 2007
Founder Bryan Johnson
Headquarters Chicago, Illinois, The United States
Key people
  • Bill Ready (CEO)
  • Juan Benitez (CTO)
Products
  • Payment Gateway
  • Merchant Account
  • Recurring Billing
  • Credit Card Vault
Revenue Increase US$9.9 million (2011)[1]
Owner PayPal
Number of employees
 144 (2013)
Website braintreepayments.com

Braintree provides payment processing options for many devices. Braintree’s global payment platform processes more than $10 billion annually (with more than $2 billion on mobile) for thousands of online and mobile companies including Airbnb, Uber, Fab and LivingSocial.[2] Braintree is in 46 markets across North America, Europe, Asia and Australia.[3]

Braintree has experienced more than a fourfold increase in a span of two years. From $12 billion in annual volume when Braintree first joined with PayPal, the company is now operating at north of $50 billion. Two years ago, Braintree had 56.5M cards on file; today it has 154M.[4]

Braintree is a Level 1 PCI-DSS compliant service provider.[5]

History

Braintree was founded in 2007 by Bryan Johnson. The company was bootstrapped, initially focusing on providing merchant account services. Braintree proceeded to develop its payment gateway software, including vault storage and recurring billing services.

Braintree raised $34 million in a Series A investment from Accel Partners in June 2011.[6] In October 2011, Johnson transitioned to Chairman of the Board and Bill Ready became CEO.[7][8] Braintree ranked 47th in the Inc 500 list that year.[9] In 2012, Braintree acquired Venmo for $26.2 million[10] that had been founded by Andrew Kortina and Iqram Magdon-Ismail[11] and expanded its payment platform to Australia, Canada, and Europe.[12][13] In October 2012, Braintree raised a series B round led by NEA for $35 million.[14] On September 20, 2013 Braintree announced that the company was processing $12 billion annually, with $4 billion of that total on mobile.[15] On September 26, 2013 Braintree was acquired by PayPal in a deal worth $800 million.[16] In September 2013, Braintree was one of only 8 companies with a market valuation in the billion dollar range. That valuation was the result of raking in $12 billion in payments volume across 40 markets, having some big names as clients including Uber and Airbnb.[17]

Products and services

Braintree provides businesses with the ability to accept payments online or within their mobile application. Its full-stack payment platform replaces the traditional model of sourcing a payment gateway and merchant account from different providers.[18]

On October 1, 2012 Braintree launched instant signup, streamlining the onboarding process for US merchants, reducing the signup process to a few minutes.[19]

Braintree first announced the v.zero SDK back in July 2014. The SDK allows automatic shopping cart integration with PayPal among other payment types. In September 2014, Braintree revealed a partnership with Coinbase to accept Bitcoin.[20]

GitHub, Jane.com, ParkWhiz, and Chargify are among the companies that launched with the v.zero SDK, which supports One Touch Payments with minimal work by app builders.[21] Current companies using the v.zero SDK include Airbnb, Boxed, Munchery, StubHub, SquadUp, TellOnMe, Type Tees by Threadless and YPlan.[22]

The family of One Touch-enabled apps includes PayPal's own mobile app, used by millions of users, most of whom have a credit or debit card stored with the service. It allows for swift mobile purchases without requiring users to create an account on an e-commerce site or enter credit-card details every time they want to buy something.[23]

The concept of One Touch is based on a prior product called Venmo Touch, which was developed in conjunction with Venmo, the person-to-person payment service Braintree bought in August 2012. Venmo Touch was the first one-touch mobile buying experience to hit the market, allowing a consumer to pay in a single touch across multiple apps on their mobile device. At the time, CEO Bill Ready's strategy was to combine Venmo's reach with consumers, who used its cash-sending features to split restaurant bills and chip in for gifts, with Braintree's reach among developers.[24]

Venmo Touch has become PayPal One Touch and it enables one-touch checkout on any digital platform – mobile app, mobile browser and desktop. Conversion on mobile is a hassle since “people aren’t willing to type in a bunch of information on a tiny little touchscreen.” But One Touch changes all of that – shortening the final checkout experience from about 4 minutes when a consumer has to manually input her payment information on a mobile device and two minutes on average on a laptop, to a single second.[25]

Credit Card Data Portability

Braintree initiated the credit card data portability standard in 2010, which was accepted as an official action group of the DataPortability project.[26] Credit Card Data Portability is supported by an opt-in community of electronic payment processing providers that agree to provide credit card data and associated transaction information to an existing merchant upon request in a PCI Compliant manner.

See also

References

  1. ↑ "The 2012 Inc. 5000 List". Retrieved August 23, 2012.
  2. ↑ http://www.vbprofiles.com/companies/521983e1843bac676e0003a2
  3. ↑ https://www.linkedin.com/pulse/two-years-after-acquisition-braintrees-authorized-payment-ready
  4. ↑ http://www.pymnts.com/in-depth/2015/braintrees-big-bet-on-mobile-pays-off/
  5. ↑ "Visa’s Global Registry of Service Providers." (PDF). Retrieved May 15, 2011.
  6. ↑ "Accel Puts $34 Million In Online Payments Platform Braintree". Retrieved October 30, 2011.
  7. ↑ http://techcrunch.com/2011/10/19/accel-eir-steps-in-as-ceo-of-online-payments-platform-braintree/
  8. ↑ "PRISM: Progress Report for Internet and Social Media" (PDF). Wedbush Inc. July 22, 2013. Retrieved February 4, 2016.
  9. ↑ "http://www.inc.com/inc5000/list/2011/". Inc. Retrieved 26 March 2012. External link in |title= (help)
  10. ↑ Wortham, Jenna (August 16, 2012). "Braintree, a Payments Company, Buys Venmo for $26.2 Million". The New York Times. Retrieved August 23, 2012.
  11. ↑ Wortham, Jenna (March 20, 2012). "After 2 Years of Testing, Venmo Opens Payment Service to Public". The New York Times. Retrieved August 8, 2014.
  12. ↑ http://techcrunch.com/2012/08/29/braintree-payments-platform-launches-across-europe-and-canada/
  13. ↑ http://thenextweb.com/au/2012/11/15/online-payments-service-braintree-expands-to-australia/#!rIVdt
  14. ↑ http://techcrunch.com/2012/10/17/payments-platform-braintree-raises-35m-from-nea-accel-to-take-on-paypal-and-square/
  15. ↑ http://pando.com/2013/09/20/mobile-payments-are-one-third-of-braintrees-business/
  16. ↑ "Ebay's PayPal Acquires Payments Gateway Braintree for $800M in Cash". Retrieved September 26, 2013.
  17. ↑ http://www.pymnts.com/in-depth/2015/braintrees-big-bet-on-mobile-pays-off/
  18. ↑ https://www.braintreepayments.com/
  19. ↑ http://techcrunch.com/2012/10/01/braintree-streamlines-sign-ups-cuts-fees-for-developers-to-bring-payments-to-their-apps/
  20. ↑ http://venturebeat.com/2015/01/22/braintree-now-lets-all-u-s-merchants-accept-bitcoin/
  21. ↑ http://readwrite.com/2014/08/19/paypal-braintree-one-touch-payments
  22. ↑ https://www.braintreepayments.com/blog/one-touch-momentum/
  23. ↑ http://readwrite.com/2014/08/19/paypal-braintree-one-touch-payments
  24. ↑ http://readwrite.com/2014/08/19/paypal-braintree-one-touch-payments
  25. ↑ http://readwrite.com/2014/08/19/paypal-braintree-one-touch-payments
  26. ↑ "Data portability in the Credit Card industry.". Retrieved May 15, 2011.

External links

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