PayPal Agrees to Acquire Paydiant
By: Dan Schulman, PayPal President and CEO Designee
Just over a year ago, Braintree was acquired by PayPal. With PayPal’s support, Braintree continues its rapid growth. In fact, its authorized payment volume in 2014 was $22.8 billion, more than doubling from 2013.
Today, I am excited to announce that we agreed to acquire Paydiant, another great company that is focused on reinventing mobile payments. While Paydiant may not be a name you recognize, if you like to pay with mobile apps, you are likely to be very familiar with the technology they've built. They're the folks that have helped companies like Subway, Harris Teeter, Capital One and many other build mobile payments, offers and loyality into ther own mobile applications. They also provide 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 many others.
With the addition of Paydiant, PayPal becomes an even stronger business partner for merchants. Using Paydiant’s platform, our merchant partners 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. Similar to PayPal, Paydiant’s technology agnostic approach means that merchants can use any mobile payment technology – QR codes or NFC – that best suits their business. Along with acquiring incredible technology, we also get Paydiant’s team of brilliant mobile developers, strong business leaders and visionary founders Kevin Laracey and Chris Gardner.
By joining the PayPal family, Paydiant will be able to scale its mobile wallet technology and offer value-added benefits to its merchant customers that only a combined PayPal and Paydiant can provide – world-class risk management, 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. Our resources will enable them to push the boundaries of innovation for merchants.
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. 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.
This announcement contains forward-looking statements that involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the receipt and timing of regulatory approval for the transaction, the possibility that the transaction may not close, the reaction to the transaction of Paydiant’s customers and partners, PayPal’s plans for Paydiant, the future growth of Paydiant’s and PayPal’s businesses, the reaction of competitors to the transaction and the possibility that integration following the transaction may be more difficult than expected. More information about potential factors which could affect our business and results is included in eBay's Annual Report on Form 10-K for the year ended December 31, 2014, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K, and other periodic filings. All forward-looking statements are based on information available to eBay on the date hereof, and eBay assumes no obligation to update such statements.
Editor’s Note: This announcement appeared originally on the PayPal Forward site.