PayOne Targets Home Depot in Patent Infringement Suit 

March 7, 2013

PayOne, a San Jose, Calif.-based mobile payments and direct carrier billing solutions provider, has filed suit against Home Depot for patent infringement. PayOne claims that Home Depot’s deployment and use of PayPal’s in-store POS system infringes on patents covering the use of a mobile phone number and PIN for transactions at the point of sale.

Joe Lynam, president and CEO of PayOne said: “Since 2000, PayOne has invested significant time and money developing its proprietary mobile payment technologies designed to simplify the checkout process and the PayOne systems have been deployed by digital merchants across the globe.”

Home Depot was the first retailer to implement PayPal’s brick-and-mortar solution in 2011. Since then, the online payments pioneer has placed its POS system in 22 more retailers totaling 18,000 locations. It’s unclear whether PayOne intends to pursue legal action against all 23 retailers. PayOne filed a patent infringement suit against PayPal in 2011 that remains in litigation.