PayPal acquires Paydiant
PayPal has acquired Newton-based mobile payments software company Paydiant. The acquisition has come few weeks after PayPal sacked out employees from its Boston office and also, ended ties with Start Tank.
Paydiant explained that its software allows retailers to have their own mobile payments wallet applications. With the help of unique and secure QR codes, the applications work. Sunway, Orange Peel, and the Merchant Customer Exchange (MCX) are among its customers.
Paydiant thinks that the deal will close by the end of this month or in April. It has huge expectations from the deal and thinks that PayPal's resources will help Paydiant to expand its boundaries of innovation.
For now, the companies have not disclosed the terms of the deal. But as per Fortune, the acquisition is worth $300 million. Jim Moran of North Bridge Venture Partners, an early Paydiant investor, was of the view that they were aware of the fact Paydiant will emerge as a key player in the mobile payments space, but the only question was when it will happen.
Paydiant's co-founder and chief executive Kevin Laracey will directly report to PayPal's chief executive Dan Schulman. "We felt very strongly that people were going to use their phones and mobile wallets to pay at the point of sale, but more important than that, have an integrated loyalty and rewards program as well", affirmed Moran.
In 2010, Paydiant was founded and since then, it has raised $35 million in investment funding from North Bridge, Stage 1 Ventures, General Catalyst Partners and others. PayPal is also in the process of spinning off from eBay.
Experts affirmed that mobile payment is a zero billion dollar industry. Some analysts affirmed that deal poses stiff competition against Apple Pay.