Entering text into the input field will update the search result below

Twitter reportedly partnering with PayPal rival; Stifel starts coverage

Jan. 16, 2014 6:57 PM ETTwitter, Inc. (TWTR) StockEBAY, TWTRBy: Eric Jhonsa, SA News Editor4 Comments
  • A source tells re/code Twitter (NYSE:TWTR) is close to a deal with online payments upstart and PayPal (NASDAQ:EBAY) rival Stripe to allow it to handle credit card payments from its ~250M monthly users.
  • The deal could allow Twitter, which entirely relies on ads and (to a lesser extent) data licensing to monetize its platform, to open up a new revenue stream. With many top brands and retailers already advertising on Twitter, there are also opportunities to link marketing campaigns with e-commerce. Chinese microblogging leader Sina already supports online payments.
  • TechCrunch reports Twitter also considered using PayPal before deciding on Stripe, and is looking to build an e-commerce marketplace similar to the one offered by fellow Jack Dorsey company Square.
  • Though still the 800-lb. gorilla of online payments, PayPal is facing stiffening competition from Stripe, Amazon (previous), and others when competing for the business of e-commerce sites not named eBay.
  • PayPal acquired rival Braintree for $800M last September, and more recently addressed an age-old customer complaint by updating its checkout process to fully integrate with merchant sites.
  • Meanwhile, Stifel has started coverage on Twitter with a Buy and $75 PT. Shares are up 1.5% AH.

Recommended For You