M-payment: PayPal InStore Tested in Swedish Retail Stores
- PayPal has launched its first mobile payment trials in Swedish retail stores. These tests are conducted using NFC stickers and PayPal’s InStore app (for Android and iPhone). The app makes it possible to identify the sticker, and, subsequently, the user’s associated PayPal account. Upon payment, the transaction data and customer information are sent to PayPal’s servers: the customer can then choose to pay with his mobile handset (payments requiring PIN validation). Two Stockholm-based partner stores are already taking part in this experiment: Alpingaraget (sports equipment) and Webhallen (electronics).
- A contact device has also been added allowing identification of the PayPal account through entering the app-provided pieces of information into the merchant’s POS terminal. Large scale deployment may take place in 2012.
- Here, NFC technology is only optional and not absolutely necessary to the payment process. Through this solution, PayPal frees itself from merchant equipment issues (compatible terminals) and shows that, however this technology is present, the solution does not entirely rely on it. With this approach, the player might be able to evolve more independently than its rivals (including Google) more limited by their constraining strategic technological choices.
- It should be reminded that PayPal has also been asserting its interest in the retail market through a private-label payment card (see October 2011 Insight) and is also interested in mobile NFC acceptance, as shown by its “Request Money” app, including contactless P2P transfers options (see November 2011 Insight).