PayPal to expand digital wallet and coupon services with acquisition

PayPal has acquired mobile payment company Paydiant in an effort to expand its breadth of mobile solutions for retailers. Although terms of the deal have not officially been disclosed, a report from Re/code indicated that the acquisition will cost PayPal up to $280 million. 

The acquisition comes a little over a year after Braintree was acquired by PayPal. With PayPal's support, Braintree continues to see rapid growth. In fact, its authorized payment volume in 2014 was $22.8 billion, more than doubling from 2013. 

With the addition of Paydient to its portfolio, PayPal believes it will become an even stronger business partner for merchants. Paydient's mobile payment technologies have helped companies like Subway, Capital One and Harris Teeter build mobile payments, offers and loyalties into their 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 more. 

The acquisition is subject to customary closing conditions including regulatory approvals, and is expected to close in late March or April 2015. As per the transaction, all of Paydient's 70 employees will join the PayPal team. 

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