PayPal mobile app enabling face-to-face credit card acceptance

By , CardRatings contributor
  • Google +
  • Twitter
  • Facebook
PayPal intends to take its credit card processing service into the offline marketplace, thanks to a revision to its popular smartphone application. Merchants, many of whom may already use PayPal to accept credit cards online, can opt in to a new "local payments" service that leverages new mobile technology. To authorize a payment, customers can "bump" an enabled smartphone against a register's receiver, or they can "wave" a phone with an attached smart chip.

According to a TechCrunch report, PayPal president Scott Thompson intends for his company's mobile device application to connect local merchants to customers who prefer to pay with a bump or a wave of their phone instead of a traditional credit card. Advocates for mobile payment technology tout the security of a system that stores real credit card numbers and bank account details on remote servers. Security teams can disable phones and tags remotely when stolen, resulting in much less hassle than replacing a lost credit card.

Merchants, already reluctant to install yet another payment processing device at their point of sale counters, may think twice about the promotional benefits involved in PayPal's new local payments system. The PayPal mobile application can steer customers past competitors directly to a participating merchant.
0 Responses to "PayPal mobile app enabling face-to-face credit card acceptance"

No Comments

Leave a Comment
About Our Ratings ×

Our editors rate credit cards objectively based on the features the credit card offers consumers, the fees and interest rates, and how a credit card compares with other cards in its category. Ratings vary by category, and the same card may receive a certain number of stars in one category and a higher or lower number in another.

The ratings are the expert opinion of our editors, and not influenced by any remuneration this site may receive from card issuers.

Advertisers in our database are highlighted, and advertisements include an option to apply using links on our site. CardRatings.com may be compensated by companies mentioned on the site when a user's application is accepted or approved by such companies.

How do your cards stack up?

Compare your card starting here


Featured Partner Cards