I suspect this is very good timing on the part of Braintree. With Stripe now actively rolling out across more than North America and with other low-overhead payment services starting to appear as well, Braintree were effectively trapped in no-man's-land with their existing business model. For start-ups and small businesses, they were way too heavy for even basic stuff like signing up compared to the new competition. For larger, established businesses, direct merchant accounts and other banking facilities are probably worth the hassle given the better margins available. If I were them and had an out like this, I'd take it in a heartbeat, too.

I heard that. As I've said before, people revere the PayPal mafia, but revile PayPal.

As it's been said by others here, this is certainly good for Stripe because more than a few Braintree customers will flock their way to avoid PayPal, but it also creates opportunities for other upstarts in this arena.

That being said, there is a certain amount of lock-in for these products, so while it's relatively easy for a business to transition their new users/payers from Braintree to Stripe/others, it's pretty painful to transition existing users/payers out of Braintree as all existing users would need to re-key their CC numbers and billing addresses.

Wow, I was looking at Braintree when I found Stripe last year. I wanted something truly different from PayPal for my customers. Looks like I made the right call.

Why would merchants looking to switch from Braintree expect Stripe's fate to be any different (i.e. acquisition)?

Hah. The real lesson if course is no place is really a safe port.