Race to beat Apple Pay picks up, as PayPal buys CurrentC-linked Paydiant

Posted:
in General Discussion edited March 2015
The mobile payment industry continues to see shakeups this week, as PayPal has announced it will acquire Paydiant, a mobile wallet developer with clients including MCX -- the consortium behind retailer-driven Apple Pay competitor CurrentC.




The acquisition is expected to close by late March or April, pending regulatory approval, and grant PayPal the ability to offer branded wallets to partner companies. These can include not just basic payment systems but promotional options like loyalty rewards, special offers, and preferred payment methods, namely gift cards and branded credit cards.

Neither company has disclosed the value of the merger.

Paydiant's offerings are described as "technology agnostic," based on QR codes or NFC rather than demanding specific hardware. Apple Pay, for instance, requires an iPhone, iPad, or the Apple Watch, while Google Wallet and Android Pay can run only on Android devices. In both cases, merchants must also have compatible point-of-sale terminals if they want to handle store transactions.

It's unclear at this stage if and how the buyout might impact MCX, which is rolling out CurrentC this year. Some retailers in that consortium have agreed to an exclusivity window, temporarily cutting options like Apple Pay out of the equation.

PayPal is already a dominant force in the mobile payments industry, with some 150 million users worldwide.
«1

Comments

  • Reply 1 of 31

    I look forward to the day when ?Pay can replace PayPal. They're starting to go off the rails, just like Daddy eBay (who admittedly went off the rails some time ago).

  • Reply 2 of 31
    I have no problem with competition, and even like the idea of more payment systems. The problem I have is when one system tries to lock all the others out. Especially when the retailers agree because that system shares more information about myself.
  • Reply 3 of 31
    SpamSandwichSpamSandwich Posts: 30,581member
    Apple Pay, just like like the iPhone, has set off a chain reaction of events by companies which have completely rested on their laurels and lazily relied on existing sources of revenue. A lot of these late to the party will eventually be out of business or they'll have to panic sell their business before they disappear.
  • Reply 4 of 31
    gonevwgonevw Posts: 45member
    Im not using any system where I share my info with anyone other than Apple.
  • Reply 5 of 31
    feynmanfeynman Posts: 1,087member

    And now PayPal Inc. looks even less attractive to potential buyers.

  • Reply 6 of 31
    Oh well, CurrentC is dead.
    I don't know how good a contract they had for the development but...
    CurrentC was going to flop anyway.

    The BIG interchange companies live Visa will eventually win this war.
    PayPal needs to change it's model to mimic Apple Pay.
  • Reply 7 of 31
    solipsismysolipsismy Posts: 5,099member
    1) I think [@]SpamSandwich[/@] sums it up well.

    2) It's a good feeling to have your position vindicated*. So much for the "Apple is late to the party" and "everyone has had this for years" comments when eveyone is having to alter their payment system to play catchup with Apple. This is Palm and Blackerry v iPhone all over again, and just as all customers benefited from that paradigm shift so will all customers benefit from this. Of course, PayPal and Google arre still making some mistakes by trying to remain in control instead of giving that to the financial instituitons, but they are getting there and will get there as it's the only path that makes sense.



    * This isn't Schadenfreude.

    gonevw wrote: »
    Im not using any system where I share my info with anyone other than Apple.

    Note that part of the beauty, simplisity and brilliance of ?Pay is that none of your transactional data goes through Apple it's the banks on one end, you on the other, and whatever companies in between for the merchant.
  • Reply 8 of 31
    nagrommenagromme Posts: 2,834member
    Apple was able to do NFC right, privately and securely and easily, and make it take off.

    I don't think even Apple could make QR code payments a success!
  • Reply 9 of 31
    paul94544paul94544 Posts: 1,027member
    Quote:
    Originally Posted by gonevw View Post



    Im not using any system where I share my info with anyone other than Apple.

    In that case,  you need to stop all your credit card because the issuing Bank "the authorizer" knows about all the purchases you make. I think what you mean is you don't want  the Acquirer "the merchant or intermediary"  knowing about your spending habits, right?

  • Reply 10 of 31
    solipsismysolipsismy Posts: 5,099member
    nagromme wrote: »
    I don't think even Apple could make QR code payments a success!

    In the hand that statement made me laugh out loud, but in he other it got me thinking. Apple's mind share could have brought more awareness to it, but I agree they couldn't make it a success. And I think that has to do with Apple only pushing things they feel can be a success, and QR Code simy doesn't fit that build.
  • Reply 11 of 31
    maestro64maestro64 Posts: 4,422member
    Just more fragmentation that is for sure. Soon we will have all sort of payment system and merchant will not know what to do. Pretty soon people will only shop at place that accept their payment system they decided to use.

    I just like how Apple does something and the industry which has not really done anything significantly new in years all of a sudden have a need to do things differently.

    Paypal screwed up on Plan A so they now on to Plan B and usually Plan B is a total screw up as well.
  • Reply 12 of 31
    paul94544paul94544 Posts: 1,027member

    Whats so great about Apple Pay is that it is highlighting that Apple is not buying into the retailer and their cronies feeding frenzy for our buying habits. Where these sharks use  our purchase history for either themselves directly or selling it on  to the next entity up the food chain. Of course that doesn't stop the authorizing bank from doing it but it certainly stops the retailer from doing it and we all know they are totally salivating about having that data so when we walk into  the store so they can identify us and bombard us with all kinds of offers , as if we don't have enough of this insanity already. It will all just be more individually targeted. This is why they are scrambling to kill Apple pay before its too late. ApplePay is huge huge threat and its a total war .. Read the "Art of war" and you will see these the tactics in plain view. We have seen nothing yet. We are only at the beginning of a major retailer war to track the customer and his/her geo. grazing habits in the store. Its nothing more than programming us like cattle to sup from this or that teat and to manipulate the customer into purchasing whatever widget/product they want. Its not about consumer choice at all, its only about what the producers wants. But of course they have to give us the impression we are in control. Welcome to the Brave new World folks! Now go pop that Soma Pill! like a good Alpha, Beta and Gamma

  • Reply 13 of 31
    maestro64maestro64 Posts: 4,422member
    Oh well, CurrentC is dead.
    I don't know how good a contract they had for the development but...
    CurrentC was going to flop anyway.

    The BIG interchange companies live Visa will eventually win this war.
    PayPal needs to change it's model to mimic Apple Pay.

    Do you know how many people shop at Walmart, It would not surprise me if Walmart got a significant number of their "People of Walmart" to sign up to pay from their bank accounts. Of these people not sure how much Visa and others care if they have the People of Walmart signed up for a CC. Most of these people do not even have teeth to eat the food they buy at Walmart.
  • Reply 14 of 31
    maltzmaltz Posts: 117member
    Quote:
    Originally Posted by Paul94544 View Post

     

    In that case,  you need to stop all your credit card because the issuing Bank "the authorizer" knows about all the purchases you make. I think what you mean is you don't want  the Acquirer "the merchant or intermediary"  knowing about your spending habits, right?




    Apple does get your credit card number once when you first add it to Apple Pay, but they claim they don't store it or even the unique device account number.  See "When you add credit or debit cards": https://support.apple.com/en-us/HT203027

     

    Anyway, ApplePay, AndroidPay, PayPalPay... :)   Bring 'em on!  From the merchant's point of view, they all work the same, so the more people that are trying to use NFC payments, the more merchants will get on board and support them all.  I can't imagine CurrentC's exclusivity clause holding out for all that long.

  • Reply 15 of 31
    solipsismysolipsismy Posts: 5,099member
    maestro64 wrote: »
    Just more fragmentation that is for sure. Soon we will have all sort of payment system and merchant will not know what to do. Pretty soon people will only shop at place that accept their payment system they decided to use.

    In B&M stores it should be transparent to the merchant. This is why ?Pay's use of NFC and a "card number" albeit not the one printed on your card, but a representational one stored by your bank, is a perfect solution. All that follow Apple's lead will not lead to fragmentation because it'll all be the same from the merchant's PoV, which is the only way this works because we have several mobile OSes, not to mention there will be watches that may even something more proprietary, like what Swatch is doing, that will have NFC payments as a feature.
    Paypal screwed up on Plan A so they now on to Plan B and usually Plan B is a total screw up.

    Every time you 1) rest on your laurels, and then 2) scramble to play catch-up with defensive tactics, you're not likely to succeed. At least PayPal has a chance since they still have a per-website method of enabling a secure payment for goods.

    I am hoping we see NFC chips — for the Secure Element — in all future Macs, as well as having ?Pay advanced in some way that it's not feasible for any one website to be hacked and have my card data stolen. For example, if Easy account that I use to decorative doilies and scented candles* is hacked and the credit card info I have on file is stolen, I don't want to have to replace my entire card. I would A) love to have an ?Pay system where each site is given a representational card number that can't be used without the proper security certificate, IP address, or some other authentication method, or B) have a payment portal open that i) allows me to pay either via Apple, just as in the case of PayPal, or ii) will allow me to pay with the tokenized card number saved locally on my Mac or iDevice when paying through Safari.

    paul94544 wrote: »
    This is why they are scrambling to kill Apple pay before its too late.

    IMO, it was too late when Apple revealed ?Pay last year.
  • Reply 16 of 31
    dachardachar Posts: 330member
    Is it a coincidence that all these alternatives to Apple pay are being announced just before an Apple meeting on 9 March? Perhaps they think Apple will announce Apple pay for many more countries and want to get some news about supposed alternative software out first. It will be interesting to see if any of the alternatives are just vapourware.
  • Reply 17 of 31
    pistispistis Posts: 247member
    Quote:
    Originally Posted by Maltz View Post


    Apple does get your credit card number once when you first add it to Apple Pay, but they claim they don't store it or even the unique device account number.  See "When you add credit or debit cards": https://support.apple.com/en-us/HT203027

     

    Anyway, ApplePay, AndroidPay, PayPalPay... :)   Bring 'em on!  From the merchant's point of view, they all work the same, so the more people that are trying to use NFC payments, the more merchants will get on board and support them all.  I can't imagine CurrentC's exclusivity clause holding out for all that long.

     

    Again NO

    Apple only uses your CC# to validate and initilaize your account with the Authorizer. Once that is completed it discard the credit card and the token is stored in the secure element. What is it about this you don't understand? Even apple doesn't know who you are so can't sell or use your data.
    So know they all are not the same. the others have access to our data and will use it like night follows day to make more money!
  • Reply 18 of 31
    gonevwgonevw Posts: 45member
    paul94544 wrote: »
    In that case,  you need to stop all your credit card because the issuing Bank "the authorizer" knows about all the purchases you make. I think what you mean is you don't want  the Acquirer "the merchant or intermediary"  knowing about your spending habits, right?

    Ummm no
  • Reply 19 of 31
    mstonemstone Posts: 11,510member
    Quote:

    Originally Posted by Maestro64 View Post

     
     Of these people not sure how much Visa and others care if they have the People of Walmart signed up for a CC. Most of these people do not even have teeth to eat the food they buy at Walmart.


     

     

    LOL

     

    Well, somehow they've apparently solved that problem, at least judging by the size of their huge asses.

  • Reply 20 of 31
    mac_128mac_128 Posts: 3,369member
    Quote:

    Originally Posted by daveinpublic View Post



    I have no problem with competition, and even like the idea of more payment systems.

    I agree. I especially like the idea of a mobile payment system that will work on my 5s (hopefully), since I'm not planning on upgrading until Apple introduces a new 4" phone.

Sign In or Register to comment.