PayPal fills out NFC plans with purchase of mobile wallet Paydiant

PayPal went to Barcelona and bought itself a new (mobile) wallet.

Although it grabbed most headlines on Sunday, Samsung isn't the only one showing off mobile wallet plans at Mobile World Congress in Barcelona this week.

PayPal confirmed on Monday that it is acquiring Paydient, a mobile wallet platform designed for centralizing mobile payments, loyalty programs and offers, ATM cash access and more e-commerce services.

Founded in 2010, the Massachusetts-based private company already counts Capital One and Subway among its customers as well as the Merchant Customer Exchange (MCX), which provides express checkout services for the likes of Walmart, Target and CVS Pharmacy, among others.

PayPal is not disclosing the financial terms of the deal, but the merger is expected to go through by late March or April.

But PayPal is already touting big plans, product-wise, for Paydient.

PayPal announced in Barcelona that it is bolstering the PayPal Here credit card reader for mobile devices by integrating Paydient's NFC technology.

Supporting both iOS and Android, the reader will pair with smartphones and tablets via Bluetooth for processing.

The payments platform provider is tapping into increased interest in NFC technology (already utilized by the likes of Google Wallet and Apple Pay) as well as the shift toward chip-and-pin cards in the wake of numerous security breaches incurred by major retailers, such as Target in winter 2013.

Hill Ferguson, senior vice president and the global head of consumer business at PayPal, promised in a blog post that with the integration of NFC on PayPal Here, merchants of "all sizes will now be able to accept contactless payments, wherever they do business."

"As U.S. businesses make the transition to EMV technology this year, the new PayPal Here card reader will enable both Chip and PIN and contactless payments from debit and credit cards, and mobile devices," Ferguson explained. "It will still be possible for businesses using PayPal Here to accept PayPal payments via PayPal's Check-in technology, track cash and checks, and send invoices and receipts so they never miss a sale."

PayPal will begin rolling out NFC-enabled PayPal Here Chip and PIN credit card readers in Australia and the United Kingdom first this summer, followed by a deployment in the United States before the end of the year.