How Will Amazon, PayPal Benefit from Mobile Acquisitions?
Just this week, Amazon (NASDAQ: AMZN) and PayPal (NASDAQ: EBAY) shored up their future mobile payments businesses by acquiring companies specializing in this area. Amazon will soon be competing with PayPal, Square, Google (NASDAQ: GOOG) and others already in the mobile payments market with its acquisition of Italian mobile payments startup GoPago. Amazon has yet to confirm the acquisition, but GoPago CEO Vincenzo Di Nicola confirmed the deal to Italian tech publication Siliconvalley.Correiere.it. “I cannot say more, except for the fact that the technology will put GoPago at the base of a new, ambitious project,” GoPago told the publication, TechnoBuffalo reported. Meanwhile, PayPal bought startup StackMob, which helps developers add new app features like push notifications and social website logins, to boost its back-end software development for mobile apps. “With the addition of the talented team from StackMob, we’ll move even faster in creating, testing and deploying products that aim to transform payments,” wrote PayPal’s chief technology officer, James Barrese, in a PayPal blog post. PayPal recently unveiled new payment features in its mobile app, such as a function allowing customers to order and pay in advance for takeout food from restaurants to avoid lines. PayPal has been 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 percent of retail sales, as well as through their smartphones, according to The Wall Street Journal’s Digits blog. Meanwhile, Amazon will likely use GoPago’s technology in its recently-launched “Log In and Pay with Amazon“ service, a digital wallet that places Amazon in competition with PayPal and credit card companies, according to TechCrunch. Login and Pay with Amazon offers online sellers a one-click checkout option, which lets users pay instantly through their Amazon accounts. Like PayPal’s recently updated mobile app, GoPago lets customers order ahead, pay on their smartphones, and then visit stores to pick up purchases without having to deal with lines. The service can also be utilized at restaurants, allowing food to be delivered at GoPago users’ tables.