PayPal acquiring mobile payment startup

On the heels of Samsung’s announcement that it would roll out Samsung Pay in the United States this summer, PayPal has announced it is buying mobile wallet technology startup Paydiant.

Paydiant technology powers payment apps for such retail brands as Subway and Harris Teeter supermarkets. But its most notable retail client is the merchant consortium MCX, which is developing an in-store payment app (widely viewed as an alternative to Apple Pay) called CurrentC. Walmart, Best Buy and Sears Holdings Corp. are part of MCX.

“With the addition of Paydiant, PayPal becomes an even stronger business partner for merchants,” said Dan Schulman, PayPal president and CEO designee (PayPal is being spun off into a separate public company by its parent, eBay. “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 acquisition is expected to close by late March or April, pending regulatory approval.