Remember how Billy the Kid used to say "I'll make you famous“ right before shooting somebody on the big screen?
Well, PayPal seems to be doing the same thing, just instead of killing people, it buys them and makes them popular like that.
That’s exactly what happened to Paydiant, an open, smartphone-based mobile payments platform that works with existing mobile, banking and retail infrastructure.
Before PayPal decided to acquire it for $280 million (£182 milion), very few people knew what it was.
The startup sells mobile payment software to retailers to enable them to create their own branded mobile payment services.
Among their customers are Subway and Capital One.
“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,” wrote PayPal President and CEO Designee Dan Schulman in a blog post.
This way, PayPal is not competing with Apple, or Google: “The acquisition of Paydiant, positions PayPal as a retailer’s ally while Apple, Google and Samsung all vie to own the in-store shopping experience with their own mobile payment systems.
"Many retailers don’t want to be beholden to a dominant payments service, whether it’s from Apple or Google. Ultimately, some may decide it benefits them to have other players such as PayPal offering alternatives.”
The acquisition is expected to close either this month or next.