PayPal buys mobile payments firm Paydiant

PayPal buys mobile payments firm Paydiant

PayPal has agreed to buy Paydiant, a Boston-based startup that helps the likes of Subway, Capital One and retailer joint venture MCX build mobile payments, offers and loyalty into their apps.

Financial terms of the deal, which is slated to close in the next month, have not been disclosed, although, citing sources, Re/code puts the price at around $280 million.

The acquisition represents PayPal's latest attempt to crack the high street. With Paydiant’s platform merchants can create their own branded wallets using any mobile payment technology - QR codes or NFC - they want.

The platform also lets retailers prioritise preferred payment types, such as store branded credit cards and gift cards. This could prove an advantage in attracting retailers over competing offerings from the likes of Apple and Google. Among Paydiant's major clients is MCX, the mobile money outfit set up by some of the world's largest merchants, including Walmart, Target, Sears, Wendy's, Exxon and CVS.

Dan Schulman, president and CEO designee, PayPal, says: "Together, I believe PayPal and Paydiant will enable merchants to create beautiful mobile experiences that make it easier and safer for their customers to shop and pay."

Meanwhile, PayPal has also given its mPOS offering an overhaul, to enable clients to accept contactless payments. With the US finally moving to EMV technology, the new PayPal Here card reader will enable both Chip and PIN and contactless payments from debit and credit cards, and mobile devices

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