PayPal, the renowned E-Commerce service provider eBay’s payment platform has recently acquired StackMob, a mobile app developer, targeting to provide the customers the facility to pay with mobile devices. This will obviously enable Pay Pal to make its presence stronger in mobile commerce apps and further popularize its mobile payments solutions. But eBay has not yet disclosed the terms of this deal.
StackMob was founded in 2012 at San Francisco which offers a platform to developers and companies to create and manage mobile applications. It is well known for its custom API (application programming interface) which is highly rated by the developers as it makes easier to connect mobile applications to backend platforms such as Salesforce and SAP. Therefore it is expected that the acquisition will support the company to develop backend software for mobile apps, which will automatically enhance PayPal’s mobile technology.
Most probably it will bring some extra mileage for PayPal when compared with its other competitors like Google Inc.’s (GOOG) digital wallet, Intuit Inc.’s (INTU) GoPayment and Starbucks-backed Square Inc.
Today’s tech-savvy consumers, are using smartphones, tablets and other mobile Internet devices to get the convenience of ordering and paying online. In order to gain out of this market trend, PayPal has wisely taken the necessary measure in time by acquiring StackMob for continued growth in the mobile space. Apart from its online payments service PayPal is opting to expand its offline, mobile and online offerings to stores, restaurants and other businesses. This has been recently reflected in its implementing an updated version of its app that offers features like ordering and paying in advance for carryout food to avoid lines.
While announcing the deal, James Barrese, PayPal’s chief technology officer, perhaps made the right comment in his blog by saying, the talented team from StackMob will help to move them faster in creating testing and deploying products that aim to transform payments.
PayPal has already started working to encourage users to spend more of their money through its network at brick-and-mortar retailers which still account for more than 90% of retail sales, as well as sales through smartphones.
Although this venture seems to be quite promising for eBay’s payment business, there are other challenges too. Banks and other companies are announcing their own payment systems to fight back and naturally the competition will be expected to pick up. Major online retailers, like Amazon.com (AMZN) are not going to make things easy for eBay. To add more, Google has also taken certain initiatives in the online retail as well as payments segment that will no doubt increase competition for the eBay.