Company reports initial loss will result from merger
Digital money transfer providers PayPal and Xoom have announced a definitive agreement under which PayPal will acquire Xoom for $25 per share in cash or an approximate $890 million enterprise value. The transaction represents a premium of 32 percent over Xoom's three-month volume-weighted average price and was unanimously approved by the Boards of Directors of both companies, as well as the Board of eBay, PayPal's parent company (for the time being).
Split expected to occur on July 8
Online auction giant eBay today announced that its board of directors has approved the completion of the previously announced separation of eBay and PayPal into independent publicly traded companies. The separation will occur through a pro rata distribution of all of the stock of eBay's subsidiary PayPal Holdings to eBay stockholders. The stock distribution still awaits necessary regulatory approvals, both in the US and overseas.
CFPB orders payment for PayPal Credit enrollment issues, payment disputes
PayPal will pay out $25 million in fines and restitution, as part of a settlement in a case claiming it deceived customers over credit schemes. The Consumer Financial Protection Bureau (CFPB) filed a complaint and proposed consent order to a federal court on Tuesday that PayPal enrolled customers into PayPal Credit without their permission, promoted benefits it failed to provide, and mishandled disputes over billing.
Paydiant purchase gives PayPal custom mobile wallet services to offer retailers
PayPal has made two announcements relating to mobile payments at Mobile World Congress, including an acquisition. The company has purchased Paydiant, a startup that provides mobile wallet services to retailers and banks for payments, loyalty cards, and coupons. At the same time, PayPal advises it will be making an updated version of its Here Chip and PIN reader, this time one that works with NFC.
Visa, Mastercard allegedly pressured by Senator Leahy to cut off Mega
File storage locker Mega has experienced a major setback. Effective immediately, and at the alleged exhortation of the US government, Paypal has ceased processing payments for the service, despite PayPal's reported confirmation that Mega is a legitimate business. PayPal has since said that the company's "unique encryption model" securing its files presents an insurmountable difficulty to confirm legal compliance.
PayPal, Bitcoin could be other options
New York City is considering upgrading its options for paying parking tickets to include more modern platforms, such as Apple Pay, according to MarketWatch. The focal point would be a new mobile app allowing people to scan a ticket and then use Apple Pay, or other options such as PayPal or potentially Bitcoin. The same app would give drivers the choice to schedule a hearing instead.
Option already available on iTunes
Apple has begun accepting PayPal at its US and UK online stores, reports note. The option has been present for some time when making a purchase through iTunes, including the App Store and the iBookstore, but missing from Apple's websites. When checking out, PayPal is listed as the only alternative to a credit or debit card.
Smartwatch app offers retailers code to accept PayPal payment
PayPal is filling out its roster of apps for mobile payments by smartwatch, with the launch of its first Pebble app. Available to download from the Pebble App Store, the PayPal app allows the wearer to make payments in stores directly from the watch, without needing to bring out their payment card or having to interact with the smartphone PayPal app.
Company upset because of tech arriving on rival device
Apple and PayPal were indeed in talks regarding Apple Pay, but those were cancelled after Samsung signed a deal to let people make PayPal transactions using the fingerprint sensor on the Galaxy S5, sources say. The people suggest that Apple was so upset that it not only backed out of talks but chose to exclude PayPal as an acceptable platform in developer documentation. Blame has been laid on eBay CEO John Donahoe, who went ahead with the Samsung deal despite opposition from former PayPal president David Marcus, who reportedly believed it might cause problems with Apple.
Splitting of eBay, PayPal expected to be beneficial to each business
Auction site eBay and payment service PayPal are splitting apart into two separate companies. A plan has been approved by the eBay board of directors to separate the two into independent publicly traded companies by next year, subject to regulatory approval, with each company set to be presided over by two new chief executives.
Coinbase, GoCoin and BitPay agreements allow processing, Bitcoins not added to wallet
PayPal is slowly embracing Bitcoin, as it said yesterday that it's working with three Bitcoin payment processors to allow merchants to accept the online currency. While Bitcoins aren't being held in the PayPal wallets at this time, the company is taking a step to help merchants that may want to experiment with accepting the currency through the PayPal Payment Hub.
PayPal offering discounted UK iTunes cards at 25 percent off
PayPal is currently offering digital iTunes cards at 25 percent off for UK customers. Users can purchase iTunes codes to redeem for music, films, TV programs, games, apps and more from the iTunes Store, iBooks Store and the App Store. Content purchased can be accessed on iOS devices and Mac or PC computers. The discount offer is available until tonight at 11:59 BST.
New API described as 'fairly easy'
PayPal is already considering implementing TouchID support in its iOS app, according to a source in the company. The person tells BusinessInsider that on Wednesday, a group of PayPal developers attended a WWDC session on the technology, which with iOS 8 is being opened up to third-party apps for the first time. PayPal's senior director of global initiatives, Anuj Nyar, has confirmed the event.
Account names, e-mails, encrypted passwords accessed in eBay breach
Auction site eBay has asked all its registered users to update their passwords, after a database holding account information was compromised. The breach, which took place between late February and early March, was first detected by the company just two weeks ago, with an internal investigation into what was taken resulting in today's announcement.
PayPal enables Pay at Table, Order Ahead in UK, Australia
Paypal is expanding the range of food-related payment options available in its apps in the United Kingdom and Australia. Already available in the United States, the Pay At Table and Order Ahead options in its iOS and Android apps are being enabled in the two countries, which allow users to pay for food at the table via the app itself, or to place orders for food for later pick-up from the location. Head of retail services for PayPal UK Rob Harper advised to TechCrunch the new features will be spreading to other European countries in the near future.
PayPal tech would be 'white-labeled' to blend into Apple system
PayPal has approached Apple about integrating itself into the latter's rumored payment technology, three payment industry executives claim. The people tell Re/code that PayPal is effectively willing to white-label portions of its payment service if Apple is willing to use them. Some shared components might include fraud detection, backend infrastructure, and actual payment processing.
Testing of hands-free Beacon system expands
Transaction service PayPal has started testing a new web feature called In-Context Checkout, reports say. Normally, web-based PayPal transactions have to be completed at paypal.com. With the in-context code in place, choosing PayPal checkout at a retailer's website will simply conjure a pop-up, where billing and shipping information can be entered. At the moment only a handful of retailers have the option, but PayPal is promising that more vendors will adopt it in the first half of 2014.
Discounted iTunes codes wipe out PayPal gifts launch supplies
PayPal has launched an online gift store, with Apple as its only launch partner, in preparation for holiday season shopping. The PayPal Digital Gifts store, coming a week after the service provided support for prepaid credit cards, will allow existing PayPal users in the United States to buy gifts and gift cards to provide to other people.
Channel 4 on-demand video service reaches Roku, Now TV streaming devices
4oD, the on-demand video service from British broadcaster Channel 4 is now available to use on the Roku and the Now TV streaming set-top boxes in the United Kingdom. The on-demand offering from Channel 4 accompanies similar services such as the BBC iPlayer and Demand 5 on the devices, as well as Sky's own Now TV prepaid Internet-based satellite television service.
Buyout to bolster PayPal capabilities
eBay has agreed to acquire Braintree, a company that specializes in payment systems, for approximately $800 million in cash. The startup will initially operate as a separate division under eBay's PayPal division, which has served as a dominant competitor in the payment-services market.
Changes to come after freezing, releasing Indiegogo campaign funds
PayPal is pledging to overhaul its policies to improve how it deals with crowdfunding campaigns in the future. The payment service is looking into what it needs to change in order to preserve security while also allowing for such funding events to take place, after it recently and publicly froze funds destined to prominent crowdfunded projects.
Plug-in dongle detects PayPal app on smartphones, alerts merchant
PayPal has introduced a new dongle for mobile transactions that allows for hands-free payments in stores. The PayPal Beacon, designed to be plugged in at retail environments, uses Bluetooth 4.0 Low Energy to communicate with smartphones running the PayPal mobile app, with customers able to allow payments to continue by confirming with store employees, rather than pressing anything on their smartphone.
New features aimed at restaurants
PayPal has redesigned its mobile apps for iOS and Android, adding options for paying at local businesses and placing orders ahead of time. A new 'Shop' tab helps users find which local retailers and eateries support PayPal payments, with options for checking in and opening a tab directly from the app interface.
Developer kit to allow Card.io-based credit card scanning
Payment service PayPal has launched a new software development kit for Android. Following on from the iOS version launched in March, the Android SDK will allow developers to integrate PayPal payments into their apps, providing them with an alternative payment processing system to Google Play, and the option to pay for in-app items or services by credit or debit card.
iPad version of PayPal Here released in US
PayPal has expanded its PayPal Here mobile payment service with an iPad optimized app. The app differs from the iPhone version through support for multiple employee logins within one account, and an interface optimized for the iPad's larger display. Payments can be accepted in several different ways within the app, including swiping a credit card with the PayPal Here reader, entering a number manually, scanning the card with technology acquired from Card.io, accepting a cheque, or using cash. eBay's RedLaser feature is also directly integrated into the app, allowing users to scan barcodes to make purchases or add inventory.
Uses card scans to help verify transactions
Online payment service PayPal has launched a new iOS SDK for developers. The tool should let iOS apps integrate PayPal checkouts directly, including optional direct credit card payments. For those, apps will have to rely on PayPal's card.io system, which involves taking a photo of a credit card for scanning purposes.
Initial roll-out in UK uses new Chip & Pin device
PayPal is rolling out a new version of its Here mobile payments system for Europe. Starting in the UK, the payments service will be providing businesses a pocket-sized device that will offer Chip & PIN protection for payments through a retailer's mobile phone, instead of the triangular attachment used in the United States.
Two more store announcements expected shortly
Despite slightly missing its goal of 20 major retail partners accepting its in-store payment platform by the end of 2012, Paypal has made good on its promise just weeks after the start of the new year. In an update made by the payment processor today, PayPal has boosted its major chain acceptance list to 21, adding Home Depot, Guitar Center, Barnes & Noble, and JC Penney. PayPal claims to have two more partner companies able to accept the program soon.
British hacker faces 10 years in prison for attacks
A British hacker has been found guilty for his part in a Distributed Denial of Service attack against payment services. Anonymous member Christopher Weatherhead, attacked MasterCard, Visa, and Paypal after they turned away from processing payments for Wikileaks, as well as music industry companies, in attacks costing those involved over $5.6 million.
Demonstrates 82-inch slate, PayPal in-app purchasing
Microsoft has sold over four million upgrades for Windows 8 in the first few days after its launch. Speaking at the Build developers event on the Microsoft campus, CEO Steve Ballmer confirmed the number in his keynote speech, alongside announcements for more Windows 8 apps, such as PayPal, Dropbox, and ESPN.
Card.io purchase brings extra payment options to PayPal
PayPal has acquired mobile payment system Card.io. The mobile app system relies on taking a photo of a credit or debit card with the phone to get the card details, rather than swiping the magnetic strip through a portable reader used in other services such as Square. The purchase of Card.io by the payments firm will add another mobile payments system to its portfolio, alongside its already existing Paypal Here swipe add-on for handsets.
Collaboration aimed at getting people buying through TVs
PayPal and TiVo are teaming up to let TiVo owners buy goods through their TVs using only a remote control. Users will be able to link their TiVos with a PayPal account and purchase goods or donate money with just a few button presses. The new feature, part of PayPal's effort to expand to more devices, is expected to roll out this fall.
V.me by Visa coming to the UK, Spain, France
Visa Europe on Monday revealed that its V.me by Visa digital wallet service will launch in the fall in the UK, Spain, and France. At the same time, payments processor WorldPay will be a key development partner of the platform in the UK. More partners, such as banks and retailers, will be named before the autumn.
Bump Pay brings personal payments to iOS
Bump has just released a new iOS app, Bump Pay (free, iTunes), that lets users transfer money between their PayPal accounts by simply touching their devices. Users just need to put in their PayPal account details, and enter the amount of money they want to send to another iOS device. No fees exist outside of the PayPal transaction and the needed credit card.
PayPal Here reader and iPhone app arrive
As leaked earlier in the week, PayPal has unveiled its own direct equivalent to Square's reader. PayPal Here's triangular reader lets anyone with an iPhone take card payments and, as expected, PayPal payments. It claims an edge over Square in sheer variety of payment types, supporting options like debit cards, manually entered or scanned card info, and even check scanning in the US.
PayPal demonstrates changes to Digital Wallet
As expected, PayPal has demonstrated its newly redesigned Digital Wallet service. Two videos outlining the thorough changes to the service are embedded below, made by the eBay Ink blog. The desktop interface sports a plethora of options of how user can user their money, pay for purchases, and even split it into different accounts, or "buckets" as PayPal VP of global product and experience Sam Sharuger reveals.
PayPal may clash directly with Square hardware
PayPal's mobile payment technology may lead to a direct competitor to Square. leaks emerging from GigaOM would have a plug-in reader to let a smartphone, and presumably a tablet, take credit cards through a native app. Other than a possible triangle shape, not much was known about what it would entail besides a launch on Thursday.
PayPal mission not fazed by CEO departure
Despite the abrupt leaving of its CEO in January, PayPal is unfazed in its mission to make money off in-store payments, AllThingsD learned. Owned by eBay, the outfit had a number of demonstration set-ups of a grocery store, hardware store, and clothing store. In the San Jose area, PayPal has working registers set up in numerous Home Depot locations as part of a pilot program.
Yahoo loses Yang as new CEO takes over
(Update: more to come?) Yahoo on Tuesday said that its co-founder Jerry Yang was leaving the company. He had immediately resigned both from the Board of Directors and "all other positions" at the search giant, including a board spot at Alibaba. He sought to "pursue other interests" beyond the company but cast it as an amicable leap, putting his confidence in new CEO Scott Thompson.
Yahoo settles on permanent CEO from eBay division
Yahoo confirmed rumors Wednesday and picked PayPal president Scott Thompson as its new CEO. The nomination of the eBay division head followed months of uncertainty at the company following the firing of Carol Bartz in September. Thompson takes the position January 9.
HP offered just 7,850 refurbished TouchPads
This weekend's eBay TouchPad sale saw 7,850 of the refurbished devices find buyers, which is all the stock HP had on hand. The 16GB eBay listing saw 2,316 sales, priced at $99, while the 32GB model sold 5,534 units at $149. All were sold in less than 25 minutes, making eBay and PayPal work much slower and return a number of errors and unsuccessful transactions.
V.me aims for app, website integration
Visa has reportedly chosen the label V.me to represent its upcoming digital wallet service, which will be paired with a developer program. The service aims to compete with PayPal and other alternatives, providing users with a quick way to make web-based payments without typing in a full credit-card number.
PayPal uses P2P protocol to enable local exchanges
PayPal has announced that it has updated its PayPal Android app (free, Android Market) to version 3.0. In doing so, it has taken advantage of the P2P protocol within the NFC framework to enable friends to be able to tap their phones together to pay each other. The function is similar to its pre-existing Bump capability, but is now a much more direct action.
Standalone mini-store in Tribeca for 3 months
PayPal will open a popup store in the trendy Tribeca neighborhood in Manhattan to showcase its point-of-sale features. PayPal will invite local merchants to visit the store, located at 174 Hudson, to see real-time demos of the company's payment processing technology for bricks and mortar stores. The store also features a QR code on the storefront window so pedestrians can learn more about the new payment options. In addition to handling payments, PayPal's new system is expected to allow consumers to check inventory in real-time, and provide location-aware and in-store offers from stores.
Overturns ruling by judge in earlier jury trial
The US Court of Appeals for the Federal Circuit in Washington today sided with e-tailer Amazon in an ongoing dispute with software developer Cordance over the use of one-click purchasing. The court overruled a decision by a trial judge who in turn had reversed a decision by a federal jury in a case over which the judge was presiding. The jury had found that, while Amazon might have infringed upon some components of Cordance's patent, the company's claims were invalid.
Google Wallet now live with more cards, one phone
As hinted earlier, Google Wallet on Monday went active for real users. The service in starting off will still work on just Citi MasterCards and the virtual Google Prepaid Card, but is now opening to rival cards. American Express, Discover, and Visa are all making their NFC specs available to let banks add the cards to the mobile payment system.
Apple takes on overcharges for Lion installs
Apple on Saturday began reversing some of the excess charges it accidentally applied to some Lion buyers. Both John Christman, the highlight example who was charged $3,878 more than the single copy he intended to download, as well as others, have said Apple would have the money back in their accounts within three to five days. Christman explained to MacRumors that Apple had revealed little while the refund request was ongoing but, when it got proof, refunded both the actual payments as well as the Paypal fees levied on top.
Blame bouncing between PayPal, Apple
Some people buying OS X Lion upgrades via PayPal are being overcharged, potentially in dramatic fashion, according to people responding to AppleInsider and Apple's support forums. In one case a person complains that they were charged about $3,878 on July 28th, the sum coming from 122 individual charges worth $31.79 each. "Apple blames PayPal, PayPal blames Apple," the person says. "They both are claiming to investigate, but I am stuck broke for three days now."
Paypal demonstrates NFC payments on Nexus S
PayPal at the the Mobile Beat 2011 conference in San Francisco Wednesday showed off its first Near Field Communications (NFC) widget for Android-powered devices. During a demonstration, funds were transferred simply by running the widget and tapping two Nexus S phones together. The new PayPal NFC widget lets users send or receive money. Holding phones together until they buzz, then entering a PayPal password or mobile PIN is all that's required to complete the transfer.
eBay buy of Zong expected to end by end of summer
Auction website eBay on Thursday revealed it bought mobile payment provider Zong for $240 million. It did so to reach four billion cell phone users as it already has PayPal for browser-based auction payments. Zong allows users to pay for their eBay purchases through their monthly cell phone bill.