The US online payment provider claims that the acquisition will strengthen its presence in credit card processing through smartphone.
PayPal global product vice president Hill Ferguson said, "We were simple blown away by the creativity and drive of their employees."
As part of the acquisition, Card.io said it will continue the supply of kits for software developers to build credit card scanning capabilities into applications for Apple or Android-powered smartphones.
According to PayPal, the latest technology utilizes data captured from pictures of credit cards taken with smartphone cameras to facilitate payments.
Currently, PayPal Here system uses a triangle-shaped "dongle" card reader which can be plugged into mobile devices allowing to make purchases while assisting shopkeepers to reimburse payments by capturing a picture of the card with a smartphone instead of having to swipe it.
