PayPal has done well in online payments and has made someheadway in merchant acquiring but has failed to find itself a role in thepayments ecosystem because it has avoided working with banks and has taken alow-touch approach to working with merchants. By low touch, I mean thatthe primary approach PayPal has taken with merchants is to offer a low-cost online card acquirer solution. Yes, PayPalhas been active in providing additional merchant services, such as loyalty andcredit solutions, but these tend to resonate primarilywith small merchants, not midsize and large merchants.
Paydiant, on the other hand, has been working with MCX toprovide merchants a mobile wallet that can lower mobilepayment acceptance costs and implement a loyalty and incentive platformto drive greater spend and shops. Paydiant has also been establishingrelationships with banks for both mobile enablement of their ATM fleets as wellas offering banks a mobile wallet that bypasses the restrictive natureassociated with the implementation of solutions from the branded networks,which have partnered directly with mobile carriers and device manufacturers tobecome their sole token service provider—thus limiting the banks’ ability toestablish similar relationships and making it more difficult to move aportfolio to another network…..Continue Reading This PaymentsJournal Perspective