News

PayPal gets acquisitive in deals with Simility, Hyperwallet

June 22, 2018

PayPal announced yesterday that it will acquire Simility, a fraud prevention and risk management platform, for $120 million in cash, subject to certain adjustments.

PayPal said the acquisition will enhance its ability to deliver fraud prevention and risk management solutions to merchants globally, according to a press release. 

Following the close of the transaction, merchants on the PayPal platform will gain access to Simility fraud tools that can be customized through their existing account management dashboard to reflect the nuances of their business.

These machine learning-powered tools dynamically adapt and evolve with each transaction to reduce fraudulent payment activity and, in some cases, verify transactions that otherwise might have failed, according to the release.

The Simility announcement followed just two days after PayPal disclosed its agreement to acquire Hyperwallet, a global payout platform, in a cash deal worth $400 million.

That makes an announced splash-out of half a billion dollars by PayPal, which is pursuing an aggressive growth strategy in a bid to vie with the major payment networks.

PayPal said in a press release that the Hyperwallet acquisition enhances its payout capabilities and its ability to provide an integrated suite of payment products aimed at e-commerce platforms and marketplaces worldwide.

Upon closing, PayPal and Braintree merchants will gain localized, multicurrency payment distribution capabilities in more than 200 markets with numerous disbursement options, including prepaid card, bank account, debit card, cash pickup, check and PayPal.

PayPal expects to close on Simility in Q3, followed by Hyperwallet in Q4.