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Visa Drops $2 Bill To Battle PayPal

  • Reuters, Wednesday, April 21, 2010 1:55 PM
Eyeing ecommerce growth, Visa has agreed to buy online payment processing company CyberSource Corp. for about $2 billion. "Visa said the deal would increase the amount of online payments it processes and the resulting business for its client banks, which issue Visa credit and debit cards," Reuters reports.

PayPal parent eBay, meanwhile, had better take notice. "We're paying attention to PayPal, as well as other companies that are getting into the e-commerce space, and we are obviously concerned that that would have an effect on our market share ... This is somewhat in reaction to it," Visa chairman and chief exec Joseph Saunders said Wednesday. The deal is slated to close in Visa's fiscal fourth quarter, and will dilute its earnings for that quarter by about 4 to 5 cents a share.

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