Connected-TV: PayPal Encouraging “T-Commerce”

• PayPal has entered a partnership with the media group Comcast Cable and manufacturer TiVo to further get involved in the connected TV sector. These agreements have been set up to propose a payment service enabling customers to send funds and transact using their remote control during ads or other specially crafted interactive programmes starting this autumn.

• In addition to designing the dedicated ads, which may take time and money, PayPal could also be working on means for consumers to store vouchers collected during these programmes directly onto their PayPal account.  

Source: PayPal Blog

• PayPal sees TVs as more “universal” payment transaction-enabling devices. This solution would further highlight its intent to aggregate all payment and interaction media.

• According to a survey conducted by the group in October 2011, 50% of TV viewers say they would be interested in “T-Commerce” and would use this channel to buy it they were to be offered the option. These results might prove PayPal right as the notion of compulsive buying grows significant.

• PayPal took its first steps in this sector in the UK with Capablue when creating a micropayment platform, called Connected (see November 2011 Insight).

• Other players tend to be interested in this market, including other giants: manufacturers (Apple with Apple TV or Samsung with its Smart TV), or telcos, such as Verizon. The latter announced last December that their Verizon FiOS customers could make payments using their TV thanks to a partnership reached with A&E’s History Channel.