Just at a time when major retailers like Walmart, Target were struggling to find an alternative to Apple Pay and Google Wallet, PayPal has struck a deal to purchase Paydient, a major mobile wallet tech developer and Apple Pay’s rival in all aspects.
Paydient has earned quite the fame by developing mobile payment apps and systems for Subway and Capital One, and is also the backbone of MCX, the consortium of major retailers which garnered enough headlines for its CurrentC that uses a QR code generated at merchant’s end to make the payment through. It never really came through though.
Major retailers have been looking to replace Apple Pay ever since it launched. Corporate credit cards or prepaid cards are not accepted yet in Apple Pay transactions. Neither are retailers’ proprietary credit cards which provide a great deal of offers and discounts to its regular customers. A major amount of revenue and sales is gained by these proprietary cards which forced major retailers into hesitations to accept Apple Pay in its full glory.
Paydient offers a rather flexible system and allows retailers and merchants to build mobile payments, loyalty cards, and offers into their apps. Merchants can choose any of the systems according their busniess preference or the one which proves to be successful in luring in more customers and, of course, higher profit ratio.
This system is also supposed to eradicate the extra tax that merchant has to pay for every transaction that is made through mobile wallet system, which at back-end uses credit or debit card for denomination eventually.
The deal is expected to close by late March or April for around $280 million. This acquisition will bring PayPal and Apple pay head to head in the field and the battle will be worth watching. This will also establish a position for PayPal in the retail stores, which had been missing ever since it was born.
PayPal has already started to work in the direction. It is releasing a new version of its Here card reader with support for NFC, Chip PIN and other things necessary for the smooth functioning of Paydient.
Sunder Pichai, in his Keynote address yesterday, announced Android Pay, Google’s counter to Apple Pay. While Google Wallet failed to capitalise on even the minilaisitc traction it had gained, with Android Pay, Google is leaving it to the developers, to integrate the API and form their own payment systems. The app’s (or API’s) biggest selling point is this availability as an API, rather than a fixed app like Apple Pay. Like Apple Pay, Google too will make use of Near-Field Communication (NFC) for payments.