PayPal is expand further into the mobile payment space with the purchase of Card.io, an app that lets users take photos of their credit card details with their phone in order to make a transaction. Card.io's technology powers payments for apps including TaskRabbit, allowing consumers to make payments without manually typing in their credit card details. Under the deal, Card.io's staff will join PayPal's ranks and work on its mobile payment app, although Card.io's technology will continue to be available for developers looking to integrate payments into their apps. Details of the deal are undisclosed.
The acquisition is likely to cause some consternation to payment startups such as Jumio, which offers a very similar card scanning service to Card.io and may struggle to compete now its competitor has been snapped up by PayPal. The move also indicates that PayPal is looking to expand the range of payment solutions available to its customers in a bid to broaden its footprint in the mobile payment space. The firm is reorganising its business around mobile, merging several product groups and promoting execs to head up the new divisions. The reshuffle also marks PayPal's ongoing focus on mobile as it attempts to keep up with younger competitors such as Square in the burgeoning mobile payments space.