PayPal, one of the fastest growing startups in the world, turned into a lumbering giant after eBay acquired it in 2002. Though it still processes billions of dollars in online payments across the globe, it risks being upended by startups like Stripe, Square and others which are offering better technology as well as better service than PayPal. PayPal has been trying to play catchup in the last couple of years, and its latest acquisition – Card.io – may help it increase its market share in mobile payments.
It announced that it has acquired Card.io earlier today. Card.io is a startup which enables developers to capture credit card information using a smartphone’s camera. PayPal was using its service to power PayPal Here, its competitor to Square.
It will presumably use Card.io’s technology and team to build better mobile payment solutions, and grab a bigger piece of the rapidly expanding mobile payments pie.
It will also keep the current Card.io technology available for use to developers. By joining PayPal, the Card.io team gets scale, while the former gets talent and a better shot at retaining its place as the market leader in mobile and online payments.
The terms of the acquisition haven’t been disclosed, but the amount is likely to be small.
via PayPal Blog