PayPal Takes Over Mobile Payment Firm Card.io
PayPal did an about turn and purchased the Cardio who they once paid to use their technology. According to PayPal’s vice president of global products, Hill Ferguson, PayPal met with the team at Cardio in order to find a way to integrate the Cardio technology into the company’s new PayPal Here app. The acquisition now paves the way to new and innovative ways to improve customers’ experiences with PayPal’s digital wallet.
PayPal has no plans to keep the technology for themselves though. Developers who currently use Cardio technology will still have access to it for use in their own applications. One plus for PayPal with this purchase is the ability to compete with others in the near field communication (NFC) payment to smartphones.
With Cardio payments are made easier since the front of customers credit cards are scanned using the camera on an Apple iOS or Android device instead of typing in the numbers. Cardio integration is seamless which makes it a very attractive option for merchants. They won’t need to purchase expensive devices to accept credit card payments. All they need is their Android or iPhone to start processing customer payments with a click of their smartphone cameras.
Cardio’s line up of clients include names like Lemon, TaskRabbit, 1-800 Contacts among others and at a cost of 15 cents per transactions merchants have both an easy and affordable way to process payments.
As competition in alternative payment options continues to grow PayPal has initiated more changes over the last few months than we seen over their 12 years in business. It’s really the first time that the company has been faced with this level of competition and so they are diversifying their product offerings to stay ahead of the game.
Apart from PayPal Here the company has also made it possible for customers to use their PayPal accounts to pay for goods purchased at retail stores without having to use credit cards. Couple this with support for NFC that allows PayPal users to make mobile payments and you’ll see that PayPal plans to hold on to their share of the market.