08 December 2016
Visit aciworldwide.com

PayPal goes after Oz and Amsterdam high streets

15 November 2012  |  8565 views  |  1 PayPal logo

In its latest incursions into the high-street, PayPal has begun testing two different mobile-based payments systems, one in Australia and another in Amsterdam.

The eBay unit has teamed up with four Aussie merchants to roll out a cashless and cardless payments system delivered via integration with existing point-of-sale terminals using the PayPal Here APIs.

Customers who download the PayPal app are checked in when they walk into a participating store. The merchant can then see their name and photo ID at the terminal and charge the purchase to their PayPal account.

PayPal says that retailers - who pay a transaction fee comparable to that for a credit card - can also use the check-in functionality to provide personalised service and loyalty programmes to regular customers.



The participating retailers are Mexican restaurant franchise Guzman y Gomez, fashion retailer Glue, Sonoma Bakery, and education specialist Crayons.

Meanwhile, in Amsterdam over 30 retailers in the De 9 Straatjes shopping district have affixed QR codes to their shop window for another trial.

Shoppers with the PayPal app can scan the codes to be automatically directed to a mobile Web site where they can see the products displayed in the windows.

They then select a product, in their desired colour and size and buy it with PayPal in just one click and have it delivered to their home within two workdays.

KeywordsEFTPOS

Comments: (1)

A Finextra member
A Finextra member | 27 November, 2012, 08:44

An interesting example of how PayPal is disrupting the traditional brick-and-mortar payments ecosystem by offering more than simple payment facilities.

The Australian trial is of particular interest because it provides the merchant with the means of identifying a customer prior to the actual moment of payment, allowing the merchant to offer a more personalised service, with the possibility of influencing the contents of the basket before the customer reaches the checkout.

It’s not clear to what extent PayPal assists the merchant in differentiating between the most loyal customers and the masses, however even if this type of segmentation is not currently provided it could quite easily be added in the future as the platform evolves to better meet the needs of the merchant.

The main challenge I can see with this approach is that it relies heavily on the level of motivation exhibited by the customer. If the customer does not manually ‘check in’ using a specific smartphone application then the merchant cannot see their details. However, similar comments could have been made in the past about FourSquare, and customer motivation didn’t prove to be a sticking point in that case.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

PayPal takes potshots at mobile wallet

PayPal takes potshots at mobile wallet

15 October 2012  |  12836 views  |  10 comments | 1 linkedin
PayPal suspends domestic Argentinian transactions

PayPal suspends domestic Argentinian transactions

18 September 2012  |  5196 views  |  0 comments
PayPal taps Discover network to reach millions of US stores

PayPal taps Discover network to reach millions of US stores

22 August 2012  |  7396 views  |  1 comments
McDonald's tests PayPal mobile payments

McDonald's tests PayPal mobile payments

20 August 2012  |  10025 views  |  0 comments
Oz bookshop lets students beat the queues with QR codes

Oz bookshop lets students beat the queues with QR codes

15 August 2012  |  6667 views  |  1 comments
PayPal Here signs up 200k merchants in weeks

PayPal Here signs up 200k merchants in weeks

04 May 2012  |  11402 views  |  0 comments
PayPal launches Square rival

PayPal launches Square rival

16 March 2012  |  11564 views  |  4 comments
PayPal re-imagines money for the digital age

PayPal re-imagines money for the digital age

14 March 2012  |  11243 views  |  1 comments
PayPal trials QR code app in Singapore

PayPal trials QR code app in Singapore

10 February 2012  |  8480 views  |  0 comments
PayPal trials mobile NFC payments in Sweden

PayPal trials mobile NFC payments in Sweden

20 December 2011  |  9825 views  |  0 comments
PayPal goes after the high street

PayPal goes after the high street

15 September 2011  |  13718 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit contisgroup.comVisit VocaLink.comVisit capgemini.com

Who is commenting?

A Finextra member Finextra Member Commented on: Payments regulator blo...
A Finextra member Finextra Member Commented on: Payments regulator blo...

Top topics

Most viewed Most shared
Guesswork alone can crack Visa card security - Newcastle UniversityGuesswork alone can crack Visa card securi...
7513 views 12 comments | 15 tweets | 27 linkedin
OCC to offer fintech firms bank charter statusOCC to offer fintech firms bank charter st...
7066 views comments | 25 tweets | 15 linkedin
China tops world fintech rankingsChina tops world fintech rankings
6868 views comments | 34 tweets | 30 linkedin
Fed Governor sounds warning on alternative credit scoring dataFed Governor sounds warning on alternative...
6260 views comments | 19 tweets | 20 linkedin
Big tech policy group calls on Trump to promote fintech innovationBig tech policy group calls on Trump to pr...
5737 views comments | 22 tweets | 11 linkedin

Featured job

to Six-Figure Base, Bonus, Benefits
London, UK

Find your next job