PayPal purchases StackMob to help with mobile platform

Backend-as-a-service provider StackMob makes it easier to improve and create mobile apps

Financial trends and news by Steven Loeb
December 17, 2013
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PayPal, like all other tech companies these days, has come to the realization that the future is mobile and so it has been looking to improve its offerings.

While understanding that mobile is important as the first step, the second part is a lot harder: the company now has to actually transfer all of its features and services onto new platforms.

And so PayPal has used its resources to hire some experts in the process by purchasing backend-as-a-service provider StackMob, it was announced on Tuesday. No terms of the deal were not disclosed, and it is not entirely clear if StackMob will remain as a standalone service, or if it will be shut down.

In its announcement, StackMob only said that it would be "communicating with you very soon regarding the future of the StackMob platform," while a  PayPal spokesperson told VatorNews,"The StackMob employees will be integrated into PayPal by helping us imagine, develop and deliver our next generation of mobile products."

This makes it sound like the company is not long for this world. So, assuming that StackMob will be integrated into PayPal, how would it work? Here is how Ty Amell co-founder and CEO of StackMob, put it:

"By joining the PayPal team, we endeavor to maintain our focus on developers through PayPal and extend innovative mobile technologies that will let you access the rich capabilities of the PayPal global network," he said.

"We believe our work at PayPal will make it easier for you to create seamless payment solutions that span online, mobile, and in-store experiences."

"PayPal acquired StackMob because it is on a mission to transform its technology and operations to accelerate the business. PayPal is building one of the most modern, advanced development environment and infrastructure in the payments industry," the PayPal spokesperson said.

"We believe we have made great progress and are now focusing on expanding our stellar team of engineers who will be able to do great work in this world-class environment."

The San Francisco-based StackMob offers a cloud computing solution for developing and deploying mobile apps, with a complete suite of backend services already in place so that developers can streamline the process and get their apps created and deployed.

Founded in 2010, the company raised a $7.5 million in a Series A round led by Trinity Ventures, with participation from previous investors Harrison Metal and Baseline Ventures in May 2011.

eBay's 2013 acquisitions

StackMob is eBay's eighth acquisition this year, and it is the second purchase made to help improve PayPal's mobile offerings, after payments platform Braintree.

Of the other purchases, four of these purchases are designed to improve the experience for eBay users.

The company said it would use price research firm to produce more detailed insights and price guidance to sellers, to help them better compete on goods. Shutl will help eBay expand its same day delivery service, while Bureau of Trade will give users a more personal way to shop.

Meanwhile, and are a staple in Belgium, with 5.5 million unique visitors coming to the sites each month.  They join the eBay Classifieds Group.

Go here to see eBay's complete list of acquisitions this year.

StackMob could not be reached for comment. 

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