PayPal made a strong move into the group payments space with the announcement it will purchase Hyperwallet for $400 million. The deal is expected to close in the fourth quarter.

Hyperwallet allows for businesses such as Etsy, eBay or Uber to easily make disbursements to multiple merchants or drivers, even across international borders. The company currently serves more than 200 global markets. Payoneer is another significant player in this space and one that must be concerned by PayPal’s move. Bill Ready, PayPal’s chief operating officer, shared the announcement on Twitter:

Excited to share that $PYPL is acquiring @Hyperwallet, a leading global payout platform. I look fwd to welcoming the team to @PayPal & @Braintree. Together we will strengthen our platform and provide additional payment solutions to our customers. https://t.co/tlNxcz6EHz

— Bill Ready (@williamready) June 19, 2018

Hyperwallet’s executive vice president of global financial markets, Derrick Walton, told Bank Innovation in December that acquisition rather than partnership will lead to fewer choices for consumers and ultimately stifle innovation in payments, though he was referring to acquisition by banks.

PayPal stock reached an all-time high on the news. The company noted on its blog:

By acquiring Hyperwallet, we will be able to provide PayPal and Braintree merchants with access to a comprehensive payments solution, including Hyperwallet’s localized, multi-currency payment distribution capabilities in more than 200 markets with numerous disbursement options, including prepaid card, bank account, debit card, cash pickup, check and PayPal.

PayPal already serves many marketplaces for consumer payments, but this move will expand its reach to the merchant disbursements side, and open up additional global markets.

PayPal is headquartered in San Jose, Calif. Hyperwallet has offices in Austin, London, San Francisco, Sydney, and Vancouver.