The jury is still out on the implications of the PayPal Paydiant acquisition and how it could affect its relationship with the Merchant Customer Exchange (MCX) and its CurrentC Network. However, a credit union service organization sees itself a clear winner from the deal.
The $280 million PayPal is shelling out for Paydiant has huge potential to disrupt the current mobile wallet war which is going gangbusters.
Paydiant helped companies like Subway, Harris Teeter, Capital One and many others build mobile payments, offers and loyalty 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 many others.
Similar to PayPal, Paydiant’s technology agnostic approach means that merchants can use any mobile payment technology – QR codes or NFC – that best suits their business. Along with acquiring incredible technology, PayPal gets Paydiant’s team of brilliant mobile developers, strong business leaders and visionary founders Kevin Laracey and Chris Gardner.
Meanwhile, Los Angeles-based CU Wallet, a Credit Union Service Organization (CUSO) says the PayPal-Paydiant merger further solidifies its goal of providing a secure, convenient and valuable mobile payment platform to credit unions that is branded and controlled by the individual credit unions as a primary member service touch point.
CU Wallet currently has multiple credit union members testing the mobile wallet in a live environment and is developing credit union-specific service extensions on top of the Paydiant platform.
CU Wallet expects to further leverage its open and secure architecture for tokenized transactions, for new clearing and settlement arrangements directly with retailers. CU Wallet share the same platform with the Merchant Customer Exchange (MCX),
For more data on PayPal access CardData®. For information and commentary on PayPal visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on PayPal are available exclusively through CardWeb.com.®