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PayPal becomes Apple Pay rival with Paydiant acquisition

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Online payment giant PayPal has confirmed that it is to purchase Paydiant, a company that provides mobile wallet technology for a number of major apps.

Most notably among those supported apps are those from MCX, which is the consortium of major retailers behind incoming Apple Pay rival CurrentC.

By acquiring Paydiant, then, PayPal will instantly position itself as a major rival to Apple's mobile payment system - albeit working in the background. PayPal has confirmed that its intention is to enable its retail partners to continue creating their own branded wallets, whether that incorporates mobile payments, store cards, or loyalty cards.

Paydiant is more of a facilitator than a dominating standard, licensing its core technology rather than demanding a cut of the income. PayPal also describes Paydiant's approach as "technology agnostic," in that its merchants can use any mobile payment technology with their custom wallets, including NFC and humble QR codes.

The likes of MCX see the mobile payment revolution as a chance to break away from the grip of credit cards and their attendant fees. This is why they are reluctant to accept Apple Pay, which comes with its own fees on every transaction made.

Read More: What is Apple Pay?

PayPal's acquisition of Paydiant will also see the company exploring another avenue away from online payments and into the realm of physical shots.

According to Recode, the price of the Paydiant deal could be around $280 million. It's expected to close in March or April

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