Well, to you and I, caramel is a confectionery product made by heating a range of sugars. But to eBay, Caramel is a platform that handles all the behind-the-scenes work of vehicle sales, including identity verification, paperwork, ownership transfer, financing, transportation, and more.

Bay has announced plans to acquire Caramel, a startup that helps car sellers and buyers complete the final steps of the transaction.

Details on the Transaction eBay has signed a definitive agreement to acquire Caramel as of January 11, 2025. Closing is subject to satisfaction of customary conditions, and is expected to occur in the first quarter of 2025. Further details are not disclosed.

Ebay's acquisition of an automotive transaction platform cements Plaid’s place in the biometric identity verification portion of the market.