PALO ALTO, Calif. -- Digital payments company PayPal has acquired Paydiant, a private-label mobile wallet platform that includes mobile payments, loyalty, offers, ATM cash access and related commerce services. The patented cloud-based platform enables merchants and banks to deploy their own secure mobile wallet solutions under their own brands, in their own apps.
Paydiant has helped companies like Subway, Harris Teeter, Capital One and many other build mobile payments, offers and loyalty into ther own mobile applications. It also provides the mobile wallet platform for Merchant Customer Exchange (MCX), whose members include many of the world's largest retailers including Walmart, Target, Sears, Wendy's, CVS and many others.
In the convenience store and gas station channel, MCX merchants include 76, 7-Eleven, Alon, Circle K, Conoco, ExxonMobil, GetGo, Kum & Go, My Goods Market, Phillips 66, QuikTrip, RaceTrac, Sheetz, Shell, Sunoco and Wawa.
Using Paydiant’s platform, PayPal 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 near-field communications (NFC)--that best suits their business.
By joining the PayPal family, Paydiant will be able to scale its mobile wallet technology and offer value-added benefits to its merchant customers--risk management, 24 x 7 customer support, loyalty points and private-label card acceptance, an open payments platform that supports all mobile operating systems and global reach into more than 200 markets and 162 million active digital wallets.
"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," said Dan Schulman, president and CEO designee of Palo Alto, Calif.-based PayPal.
The acquisition of Auburndale, Mass.-based Paydiant is subject to customary closing conditions, including regulatory approvals, and the companies expect the deal to close in late March or April.
Boston-based MCX is building a customer-focused and security-driven mobile payment solution that will deliver a better payment and shopping experience for customers and merchants. Collectively, MCX companies operate more than 110,000 locations and process more than $1 trillion in payments annually.
MXC is planning to launch its Paydiant-powered CurrentC mobile wallet in early 2015.
Paydiant-powered CurrentC will be MCX’s answer to Apple Pay and Google Wallet, said a report by Business Insider.
With this acquisition, PayPal proves it hasn’t given up on brick-and-mortar payments.
Bill Ready, head of the merchant division of PayPal, told Del Rey that PayPal is confident “merchants and major retailers are going to want to control their own destiny in terms of what they accept.”
Through Paydiant, PayPal will now have easy access to work with those retailers.
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