EBay Inc said it would buy payment gateway Braintree for about $800 million in cash to add to its PayPal business. Braintree helps to process online and mobile credit card payments by providing a merchant account, payment gateway, billing and credit card storage.

"Braintree is a perfect fit with PayPal," said eBay Inc. President and CEO John Donahoe. "Bill Ready and his team add complementary talent and technology that we believe will help accelerate PayPal?s global leadership in mobile payments. Together, we expect that PayPal and Braintree also will accelerate our leadership in supporting developers who are creating innovative solutions for next generation commerce startups."

Once the acquisition is completed, Braintree will continue to operate as a separate service within PayPal under the leadership of Braintree CEO Bill Ready, who will report to PayPal President David Marcus. Braintree's management team and employees are expected to stay in place.

"PayPal was built on helping entrepreneurs grow great businesses online. I?m thrilled to welcome the Braintree team," said PayPal President David Marcus. "With this deal I believe that we will accelerate our capabilities for developers, entrepreneurs, merchants and companies that are building the future."

Venmo, Braintree's mobile application that gives people an easy way to pay each other using their mobile devices and leveraging social networks, is part of the acquisition and will help to contribute to PayPal?s mobile payments capabilities.

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close late in the fourth quarter of 2013.