PayPal acquires credit card scanning startup card.io
PayPal has acquired card.io, which develops credit card data capture technology integrated into applications including the PayPal Here mobile payment system. Financial terms were not disclosed.
Created by AdMob veterans Mike Mettler and Josh Bleecher Snyder, card.io automatically reads credit card information using a smartphone's camera, enabling merchants to process transactions without swiping the card through a hardware extension or inputting account information. Card.io launched on Apple's (NASDAQ:AAPL) iOS in mid-2011, extending its card processing SDK to Google's (NASDAQ:GOOG) Android earlier this year. The firm closed a $1 million seed round last summer, with angel investors including AdMob founder Omar Hamoui.
PayPal Vice President of Global Product Hill Ferguson states that the card.io staff will join his team to help create new consumer and merchant experiences integrated into the company's m-commerce services. PayPal will continue to make the card.io SDKs available to third-party developers.
PayPal Here, introduced in March, enables small businesses and other users to process credit and debit transactions by swiping the card through a small, triangle-shaped dongle that attaches to their smartphone or tablet. Users also can access their mobile device's camera to scan and process cards and checks. PayPal Here charges merchants a flat rate of 2.7 percent per transaction, a .05 percent savings over rival Square's mobile payment offering. More than 200,000 merchants signed up for PayPal Here in its first month of availability.
In addition to PayPal Here, eBay-owned PayPal launched mobile wallet consumer trials in early 2012 across about 50 Home Depot stores. Within weeks the initiative expanded to all 2,200 Home Depot locations in the U.S., and in May, PayPal rolled out the service to 15 additional nationwide retail chains.
Close to half of U.S. consumers are interested in using mobile wallet services, according to a recent survey conducted by financial services consulting firm Carlisle & Gallagher. Eight of 10 consumers interested in mobile wallet services said they would use PayPal as their wallet service provider; six in 10 would use Google, and another six in 10 would use Apple, which presently does not offer a wallet solution.
- read this PayPal Blog entry
Card.io expands mobile commerce SDK to Android
Card.io launches m-payment SDK for iOS developers
Former AdMob execs launch m-payment service card.io
Survey: Demand for PayPal mobile wallet trumps Google, Apple
PayPal expands mobile wallet to 15 new national retailers
PayPal Here merchant signups eclipse 200K in first month