Mobile payment is a tricky proposition. Users want ease of use along with extreme security, which is not always easy to accomplish. PayPal takes e-commerce and mobile payments seriously but it has faced stiff competition in these particular segments with the introduction of competitors such as Google Wallet.
Furthermore, companies like Square have offered up new innovations such as the credit card swipe dongle for smart devices. PayPal, in order to continue innovating has acquired one of its partners, card.io.
Card.io allows for the capture of credit card information for the use of payment, with the help of the built-in camera of smart devices. Simply taking a picture of the credit card is enough to make a transaction. PayPal has stated that the card.io SDK will still be available to developers. Hopefully, the acquisition can speed up improvements to the digital wallet.