PayPal purchased mobile payment software company Paydiant on Monday in a deal worth $300 million.
"PayPal's resources will enable us to push the boundaries of innovation for our retail and banking customers," Paydiant said in a statement, according to the Boston Globe.
The purchase is said to be finalized later this Spring.
Paydiant, which functions as a platform for interaction between banking and mobile institutions, allow users to develop a wallet of applications for payments. It works with retail companies in the United States among the ranks of Target, CVS and Walmart.
Some analysts have suggested the deal offers competition against Apple Pay.
"The reality is that mobile payments is still a zero billion dollar industry. While we had very big contracts with some very big merchants, the actual dollar values and volumes were just kicking in," North Bridge venture capitalist Jim Moran said, according to Fortune.
"And then you have what Apple is doing, which shined a big light on what we were doing but it caused a lot of boards to stutter-step on mobile payments. Apple's solution is very simple and requires NFC-capable point-of-sale systems which aren't very common yet, but they do have hundreds of millions of loyal customers and great phone. Plus, they're Apple and they could buy a small country."
PayPal is also in the process of spinning off from eBay and recently laid off several employees at its Boston branch.
The company was founded in 1998.
