March 4, 2015
PayPal has welcomed Paydiant into their family. Paydiant is a 2010-born, Boston-bred mobile, cloud-based payments platform. Paydiant is the back end of the technology that offers sellers (retailers) their own personal mobile payment options under their own brands and also within their own applications. This allows merchants to be in control of and offer their own wallet and payment options.
While PayPal is looking to break away from Ebay, acquiring Paydiant will allow it further exploration into other businesses. With this acquisition, PayPal hopes to become more popular for wallet and mobile payment options with companies who want to control their own systems and are not interested in the branded, big-name options such as Apple Pay, Google Wallet, or Samsung Pay which was recently announced at Mobile World Congress in Barcelona. With Paydiant, PayPal will be able to more effectively compete with others in this arena. As it plans for it’s stand-alone status outside Ebay, PayPal want to become popular outside of internet payments, and this seems like a logical step as it looks out on the horizon.
Orange Leaf, Subway and Harris Teeter are already successful merchant customers of Paydiant along with banks such as Capital One and Barclay. Paydiant’s highest profile client is MCX, a company created to develop merchant owned payment systems. There is no word on how this deal will impact their current relationship, although many industry analysts had given up on expecting much progress from MCX, or it’s consumer brand, CurrentC. Perhaps, the new home at PayPal will resuscitate Paydiant’s partnership with MXC - it remains to be seen. Paydiant works with their clients to ensure secure payment options as well as loyalty and reward programs. Paydiant also relays vital information about users payment trends to clients to help drive sales and aid in growth.
Dan Schulman, PayPal President and CEO Designee announced, With the addition of Paydiant, PayPal becomes an even stronger business partner for merchants. Using Paydiant’s platform, our merchant partners can now create their own branded wallets to accelerate mobile in-store payments and drive consumer engagement through mobile payments, loyalty, offers and the prioritization of preferred payment types, such as store branded credit cards and gift cards. Similar to PayPal, Paydiant’s technology agnostic approach means that merchants can use any mobile payment technology – QR codes or NFC – that best suits their business.
The deal is for a reported $280 million and is said to close sometime in late March or early April. With Paydiant, PayPal expects to provide a stronger payments service for their existing on-line and new in-store customers.