PayPal's new $800 million pal

EBay buys online payments processor Braintree to give its own business, PayPal, added mobile growth.

Well, Braintree has really the best-class solution for developers and the markets. Developers want it to build great payments experience inside mobile apps or websites, can tap into the SDK's software development kits and API is provided by Braintree. Companies like LBMB,hoteltonight, all these companies that are creating the future are tapping onto Braintree's platform to build great experiences. And we feel really really strongly about paypal being the payment's operating system on top of which innovators build great companies. And that's why we connected with Braintree and now we are excited to welcome them to the paypal family.

And for those of us who are,you know,lay people, does that mean that you are getting access to consumers,especially those using smart phones and tablets that maybe you won't connect with before?

So it's a different way. You know, paypal is available almost on every single merchant out there. Millions of millions of merchants, 190 markets, 140 million consumers, but there are lots of applications out there that also accept credit cards and the best consumer experience to accept credit cards on those apps is actually provided by braintree. And they also offer great ranges of solutions and services to startups and those companies that are developing the future. And that's what made it so appealing to us.

David, you have talked before about the fact that consumers although they are using these mobile payment system, digital wallet, they are a little slow to adapt. I've seen some studies suggest that only 16% of smart phone owners have used the digital wallet in the last six months. What's going to change that?

Well, it's all about where you can use it? How many locations can you use a digital wallet at, And when I say digital wallet, it's really mobile payment in the real world. And we are expanding that really really fast, but you need to have a certain density of coffee shops, of restaurants, retail stores and grocery stores that accept mobile payments. And I don't know whether you saw that, you know, we announce Beacon, a new technology that we are big believers. And two weeks ago, it will enable you to literally pay completely hands-free. So you walk into a store, and your phone viberates or makes a little sound and you know you can just say I'm paying with paypal and you pay hands-free. And it's really a magical user experience and we feel really good about our ability to roll that out in the years to come, so that you have enough density. And with density of available services, you will have more and more people using these services because they are more convenient.