PayPal is to acquire Paydiant, an Auburndale, MA-based mobile payments company.
The amount of the transaction, which is subject to customary closing conditions, including regulatory approvals, and is expected to close in late March or April, was not disclosed but reports said it could be approximately $280m.
With the addition of Paydiant, PayPal’s merchant 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.
Co-founded by Kevin Laracey and Chris Gardner, Paydiant provides companies like Subway, Harris Teeter, Capital One and others with a solution to build mobile payments, offers and loyalty programs into their own mobile applications. The company also operates the mobile wallet platform for MCX whose members include many large retailers including Walmart, Target, Sears, Wendy’s, Exxon, CVS and others.
Following the acquisition, Paydiant will scale its mobile wallet technology and will be able to benefit of the combination with PayPal to offer 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.
The company was backed by North Bridge Venture Partners, General Catalyst Partners, Stage 1 Ventures.