PayPal Doubles Down on Mobile Payment Strategy
Now PayPal seems to be doubling down on that bet. The company announced that it has solidified its relationship with the company powering PayPal Here--credit card scanning start-up Card.io--by acquiring it for an undisclosed amount.
PayPal Here allows users to swipe credit cards using a thumb-sized reader similar to Square's; business owners can also scan cards and paper checks with a mobile phone camera.
On the Android platform at least, PayPal currently dominates the fragmented market for mobile payments. According to an NPD report tracking mobile shopping and transactions, the PayPal app accounted for 13% of the Android users who engaged with a mobile payments tool in May. No other competitor had more than a 5% share. The NPD report did not track iPhone users.
PayPal hopes that by whisking Card.io employees to its San Jose office, the company can help "create new experiences to make it even easier for consumers and merchants to use the PayPal digital wallet," PayPal's VP of global product, Hill Ferguson, said in the blog post announcing the move.
This move marks PayPal's second recent foray into the mobile payment sphere. Last July, parent company eBay bought Zong for $240 million. Zong allows users to pay for purchases by adding the payment directly to their mobile phone bill.
In addition to PayPal, Card.io's high-profile clients already include Uber, LevelUp, and TaskRabbit, TechCrunch reports. Card.io says that it plans to continue working both with current clients and new developers.