PayPal Holdings Inc (NASDAQ:PYPL) To Use Modest To Bolster Partnership With Uber, Pinterest
PayPal Holdings Inc (NASDAQ:PYPL) is buying Modest, a young startup behind a potentially crucial e-commerce technology. The move signals PayPal’s growing interest in e-commerce, especially after it separated from the parent eBay Inc (NASDAQ:EBAY). PayPal already partners with Uber and Pinterest to enable them to add buy buttons to their platforms. Modest is expected to enable PayPal to do more with these partners and others.
Online shopping is already thriving, but marketers believe they can do more through contextual e-commerce implementations, such as enabling in-the-moment buying. Through this strategy, buy buttons are included in customer touch points, such as social media, blogs and emails.
PayPal Holdings Inc (NASDAQ:PYPL) already has a hand in in-the-moment purchases through its payment arm called Braintree. To take its buy button support to the next level, PayPal plans to merge Modest with Braintree, and the management expects something great from the combination of the two technology tools.
Merging Modest with Braintree
According to PayPal’s SVP of next generation commerce, Bill Ready, Modest will enable PayPal to perfect its buy button offering. Moreover, Modest will help the company to accelerate the rollout of its comprehensive e-commerce offering to partners.
PayPal Holdings Inc (NASDAQ:PYPL)’s Braintree already counts Pinterest and Uber among its buy button technology affiliates. The likes of Twitter Inc (NYSE:TWTR) and Facebook Inc (NASDAQ:FB) are also experimenting with buy buttons on their social media platforms, and they or others could find PayPal’s enriched ‘in-the-moment’ purchase technology exciting.
Search for new growth
With so much engagement taking place on social networks these days, the buy button may end up being the natural way that people sell or buy items online.
PayPal Holdings Inc (NASDAQ:PYPL) understands that the business of online payment processing is becoming competitive, with deep-pocket rivals like Apple Inc. (NASDAQ:AAPL) entering the space. As such, the company is looking to diversify its revenue stream, and the concept of in-the-moment buying that takes the form of an embedded buy buttons seems to offer hope.
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