Mobile payments got serious attention with the launch of Apple Pay, and PayPal is not sitting idly by. Dan Schulman announced his first acquisition as PayPal President, a Boston company called Paydiant that is working on an alternative to Apple’s mobile payment service.
Schulman, who led American Express’ global strategy on alternative mobile and online payment services, joined PayPal in October and will become CEO once PayPal breaks up with eBay later this year. And according to ReadWrite on Monday, Schulman has reorganized PayPal, elevating Hill Ferguson and Bill Ready to lead the company’s consumer and merchant businesses, respectively.
Paydiant goes beyond mobile payments – it allows merchant partners (and financial institutions) to create their own branded wallets. The ability to build customer loyalty is a big part of Paydiant’s value proposition – it has helped companies like Subway, Harris Teeter, Capital One build mobile payments, offers and loyalty into their own mobile apps.
Paydiant also provides the mobile wallet platform for MCX whose members include many of the world’s largest retailers including Walmart, Target, Sears, Wendy’s, Exxon, CVS and others.
Paydiant is “technology agnostic,” meaning merchants can use any mobile payment technology – QR codes or NFC. Under PayPal’s ownership, it will be able to scale more quickly.
“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,” Schulman said. “I’m really excited for the Paydiant team and founders to join the PayPal team.”
The acquisition of Paydiant is subject to customary closing conditions, including regulatory approvals, and is expected to close in late March or April.
PayPal did not disclose terms, but Fortune said the sale price was around $300 million, consisting of $285 million of equity and $15 million in founder earnouts.
Apple competitor Samsung, meanwhile, unveiled Samsung Pay, a mobile payment service that will enable MasterCard cardholders to use their Samsung Galaxy S6 for in-store purchases. It will work not only with new contactless-enabled systems, but with most traditional point of sale terminals as well. Samsung Pay will be available for U.S. consumers this summer, and to additional global markets later, including Korea.