PayPal to acquire mobile wallet Paydiant

NEW YORK: eBay's mobile payment services unit PayPal will acquire mobile wallet firm Paydiant for an undisclosed sum as the competition in the payment solutions market from rivals like Apple and Google heats up.

US-based Paydiant provides backend support to a host of companies, including fast food chain Subway, Barclay Card and financial services provider Capital One.

"I am excited to announce that we agreed to acquire Paydiant, another great company that is focused on reinventing mobile payments," PayPal President and CEO Designee Dan Schulman said in a blogpost.

According to reports, the deal is estimated to be close to $300 million.

This acquisition is believed to be eBay's bid to take on Apple Pay and Google's Android Pay API in the increasingly competitive mobile wallet business.

eBay will split PayPal and list it as a separate and publicly traded company this year.

Paydiant also provide the mobile wallet platform for MCX, whose clients include Walmart and fast food chain Wendy's.

Schulman said: "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."

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close by the end of the month or by April.

Under this deal, the full Paydiant team along with its founders Kevin Laracey and Chris Gardner will join the Paypal team.