Race to beat Apple Pay picks up, as PayPal buys CurrentC-linked Paydiant
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.
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.
Comments
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).
And now PayPal Inc. looks even less attractive to potential buyers.
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.
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.
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.
I don't think even Apple could make QR code payments a success!
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?
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.
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.
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
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.
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.
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.
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
IMO, it was too late when Apple revealed ?Pay last year.
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 NOApple 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!
Ummm no
LOL
Well, somehow they've apparently solved that problem, at least judging by the size of their huge asses.
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.