PayPal to Acquire Verisign's Payment Gateway

[amy]

***A Message from Jeff Jordan*** 

October 10, 2005 | 01:21PM PST/PT

I’m excited to let you know that PayPal has agreed to acquire VeriSign's payment gateway. This acquisition will allow PayPal to accelerate its growth in off-eBay merchant services, and will provide merchants with even more processing choices from a single provider – including VeriSign's gateway, PayPal’s Website Payments Standard, Express Checkout or Website Payments Pro.

In addition, eBay and PayPal have signed a multi-year agreement with VeriSign for a variety of technologies, including authentication tokens, which protect the security of online transactions. eBay and PayPal users will benefit with enhanced security and privacy of their account data.

We’ll keep you informed about how these technologies will be integrated with eBay and PayPal in 2006.

Sincerely,

Jeff Jordan
President
PayPal

http://www2.ebay.com/aw/core/200510.shtm...0-10131844

[amy]

news story.  purchase price $370 million.

VeriSign will also provide eBay and PayPal with a suite of security services that includes the deployment of two-factor authentication, a security system that gives customers a one-time password or digital certificate to help protect against online identity theft.

With the acquisition of VeriSign's payment gateway, which processed more than $40 billion in total payment volume in 2004, PayPal said it plans to expand its customer base to tens of thousands of new small and medium-sized business customers online.

http://biz.yahoo.com/bizj/051010/1175687.html?.v=2

[Nat]

$370 million? Uh oh...do I see a Paypal fee increase in the near future?

[maggie777]

Verisign customer here.  This stinks. 

[mandy]

The eBay Glitch Curse which turns previously smooth functioning companies into glitch ridden messes after their acquisition by eBay has struck again

A glitch in transferring data over the weekend from VeriSign Inc.’s payments gateway service to PayPal is creating major reconciliation and settlement headaches for numerous online retailers and other businesses.

Over the weekend VeriSign and PayPal conducted the biggest transfer to date of payments and account data from VeriSign’s payments gateway to PayPal, which acquired VeriSign’s gateway in a deal valued at $370 million in October. But during the course of transferring information, customers did not have access to account reporting tools, which typically allow them to check critical payments information such as account information, transaction histories, transaction logs and other payments-related data, says a spokeswoman for eBay, which owns and operates PayPal. ...

full article: http://www.internetretailer.com/dailyNews.asp?id=18663

[xppman]

I wonder if PayPals own dwindling active numbers may have been "augmented"
and included these VeriSign customer in the last Q report.

As far as The eBay Glitch Curse.

Why am I not surprised. 

[Anita]

Another company down the toilet...

[xppman]

  :mgoodnews:

Now if they buy LinkPoint

[maggie777]

[quote author=mandy link=topic=761.msg14863#msg14863 date=1148472088]
The eBay Glitch Curse which turns previously smooth functioning companies into glitch ridden messes after their acquisition by eBay has struck again

[/quote]

I knew it would happen.  I switched to CyberSource in December.  ;D

[Anita]

I sure hope eBay has NO INTEREST in buying any grocery store chains anytime soon.  

That would the ultimate cruel joke to go to work one day and fine out eBay bought out Safeway.