PayPal rival sues Home Depot over mobile phone checkout option
A PayPal competitor is suing Home Depot, claiming the Atlanta-based home improvement retailer is infringing on the rival’s patents by using PayPal’s mobile checkout technology.
In a suit filed in federal court in San Jose, PayOne claims the technology allows Home Depot customers to use a mobile phone number and a personal identification number, or PIN, to complete sales without giving out credit card details or other sensitive financial information.
Home Depot spokesman Stephen Holmes said Wednesday that the PayPal option is available at all of its stores, but that he could not comment because Home Depot had not seen the suit.
PayOne, formerly called PaymentOne Corp, is seeking unspecified damages and a court-order barring future infringement by Home Depot.
San Jose-based PayPal, which is owned by eBay, announced last year that its mobile payments technology would be used by Home Depot and 16 other retailers. PayOne warned the retailers they would be infringing on its patents.
In a statement Wednesday, PayOne said it has invested “significant time and money” in developing systems that allow customers to use their phone and accounts tied to the phone to simplify payments and checkouts.
PayOne has also sued mobile payment provider Zong for alleged patent infringements.
