PayPal Adds 15 Stores to Offline Payment SolutionBy: Mike Fossum - May 25, 2012
PayPal has just announced on its blog that it’s outfitting 15 new U.S. brick and mortar retailers to use its offline payment and shopping solutions. The stores include Abercrombie & Fitch, Advance Auto Parts, Aéropostale, American Eagle Outfitters, Barnes & Noble, Foot Locker, Guitar Center, Jamba Juice, JC Penney, Jos. A. Bank Clothiers, Nine West, Office Depot, Rooms To Go, Tiger Direct and Toys “R” Us.
The system doesn’t require a merchant to install NFC or any other sort of upgrade, and works with a store’s existing hardware. Consumers can make purchases with either a PayPal card, or with a phone number and PIN. PayPal President David Marcus states, “Consumers are relying on technology now more than ever to simplify their lives when it comes to shopping and paying, and retailers must adapt to this shift or risk becoming irrelevant – Innovative retailers everywhere are looking for ways to improve the shopping experience, extend loyalty programs and better engage with their customers.”
Marcus adds, “We’re able to drive consumers through a retailer’s doors with relevant offers, coupons and discounts, then maintain a relationship with that consumer that keeps bringing them back to the retailer, in store or online.” It’s evident that PayPal seeks to not only give consumers an alternative to standard credit cards, but also seeks to compete with Google Wallet for in-store sales, as well as with Groupon.
PayPal also recently noted that the YMCA was the first non-profit to adopt its Here card-reader system. PayPal Here, similar to Square’s Card Reader system, charges a 2.7% fee on all transactions, as compared to Square’s 2.75%.