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Subway to add PayPal as a payment option

Paydiant, a mobile wallet developer PayPal acquired last year, originally built Subway's mobile app and released an update earlier this year.

Subway Wednesday announced that it will integrate PayPal as a payment option later this year in more than 27,000 U.S. locations, according to a company blog post. 

Paydiant, a mobile wallet developer PayPal acquired last year, originally built Subway's mobile app and released an update earlier this year. The app enables users to place mobile orders.

Consumers who wish to pay for their Subway meals with PayPal can select the option on their smartphone whether they place the order in-store or through the app, according to the announcement. PayPal also will be integrated as a payment choice for online orders.

"We’re also enabling PayPal’s One Touch checkout experience for eligible consumers checking out online and on mobile," Chris Gardner, Paydiant's co-founder, said in a statement. "With One Touch, consumers that have opted-in can pay in a single touch without having to type in their PayPal usernames or passwords after initial login for 6 months."