PayOne is filing a lawsuit against Home Depot, claiming Home Depot’s use of in-store checkout technology from PayPal infringes on PayOne patents.
The complaint says Home Depot's use of PayPal's point of sale payment system, which allows users to make payments by giving the merchant a phone number and PIN, is covered by PayOne’s patents.
PayOne’s technology allows the use of a mobile phone and PIN to transact at the point of sale, as well as enable real-time authentication and fraud control. The company contends its patents cover these methods, as well as technology that enables settling of financial transactions using a variety of funding methods, including accounts tied to the mobile number as well as credit/debit accounts and prepaid cards for physical and digital goods and services.
“The ‘mobile wallet wars’ have moved beyond the digital world into point of sale, but now face adoption challenges and substantial friction with consumer setup requirements, security concerns and lack of merchant required NFC infrastructure,” said Joe Lyman, president and CEO of PayOne, in a release.
Home Depot would not provide comment for this story. PayOne and PayPal did not immediately return requests for comment early Tuesday.
PayOne sued Zong, which is now a unit of PayPal, in 2011 for patent infringement, claiming Zong deployed mobile payments and mobile carrier billing with Facebook and other merchants using what PayOne contents to be infringing technology and methods. PayPal's parent eBay bought Zong in 2011 and the following year named Zong founder David Marcus president of PayPal.