Payments start-up Ensygnia to sue Paddle

London-based mobile payments service provider Ensygnia is suing UK competitor Paddle for alleged patent infringement.

London-based mobile payments service provider Ensygnia is suing UK competitor Paddle for alleged patent infringement.

Ensygnia has two patents filed in 59 countries worldwide for its product Onescan. These cover log-in and payment applications, including scanning visual codes like QR.

The startup has so far raised £2m ($3.3m) from various investors, including Telefonica’s startup accelerator Wayra. Paddle, by comparison has raised £320,000 ($530,000).

"Being backed by significant shareholders to whom we owe a duty of care to safeguard our IP, we approached Paddle more than a year ago when we discovered what they were doing, as our view was that it was a clear infringement," Ensygnia CEO and co-founder Richard H. Harris told Tech Crunch.

"We much prefer meeting rooms to courtrooms, but if pressed we will not hesitate to vigorously defend our intellectual property which we are actively commercialising via our own product and OEM license arrangements."

Paddle dispute the claims: "Our system operates in a crucially different way to that described in their patent," said Paddle founder and CEO Ed Lea.

"Furthermore, there is a granted European patent and a Stanford research paper that both predate the Ensygnia patent’s filing date."

The customer experience for users of each product possess some similarities. Both Ensygnia and Paddle store card and delivery details and allow payment via a mobile application which scan codes.