Tag: braintree

Braintree mobile payments to include Visa Checkout

Both PayPal and Visa announced that the credit card service would soon be available to the platform’s merchants.

Visa and PayPal have both announced that Braintree mobile payments using merchants will soon have access to Visa Checkout. Braintree is PayPal’s payment processing company catering to online companies. Some of the more notable brands using these mobile payments include Uber, Pinterest, Airbnb and Evenbrite.

With Braintree, merchants can accept a spectrum of different types of online payment options.

The Braintree mobile payments platform lets merchants accept transactions by way of a mobile app, online and in-store. Soon, it will also include Visa Checkout as an option. In this way, Visa cardholders will be able to make a payment to these merchants using any connected device. Visa Checkout is already being used by several online merchants including Walgreens, Best Buy and Starbucks.

A statement from the credit card company pointed out that Visa Checkout will bring familiarity to Braintree mobile payments.

Braintree mobile payments - Open Sign with VisaVisa senior vice president of digital solutions, Sam Shrauger, said “With the Visa card at the center of the payment experience, Visa Checkout brings familiarity and trust to digital shopping offered by Braintree’s customers — some of the most innovative merchants driving eCommerce and mCommerce today.” He also added that Visa is “thrilled” with their new partnership with Braintree and PayPal for improving the way credit cards work on any connected device.

Merchants in the United States will gain access to Visa Checkout through the Braintree SDK in early 2017. The seamless integration of that SDK makes it possible for merchants to enable new buying experiences and payment options. At the moment, there are 14 million consumer accounts with Visa Checkout as well as thousands of merchant accounts.

This new agreement between PayPal and Visa has arrived at a time when some of the heat has eased in the rivalry between the two companies. They announced a strategic partnership in July. That brought the largest global payment network together with the biggest digital payments network. With Braintree mobile payments there will be improved choice for consumers paying with PayPal accounts. The companies feel this is taking them both “on a new path.”

Banks are beginning to take mobile payments seriously

Several large banks are working to serve mobile consumers better

Major banks in the United States are beginning to take the fight to the mobile payments space after resting on their laurels for several years. Banks had been wary of introducing innovative services and platforms in the past due to the financial crisis of 2008. Now, however, banks are finding that the mobile commerce space has the potential to be quite disruptive. While the mobile commerce space is intrinsically connected to these banks, they want to ensure they can compete on a level that the mobile commerce space has been able to corner, and that involves engaging consumers more effectively.

Banks are beginning to make use of the clearXchange system

For years, mobile commerce companies have made it possible for consumers to send and receive money almost instantaneously. Peer-to-peer payment services have become very popular among young consumers, many of whom rely very heavily on their smartphones. Banks see this as an opportunity, and many have begun to use the clearXchange system, which allows for instant money transfers to friends and families. Customers with U.S. Bancorp and Bank of America can now send money instantly thanks to the new system. JPMorgan and Capital One Financial plan to begin using the system later this year.

PayPal highlights the success companies can find in the mobile commerce space

American banks and mobile paymentsThe reason the mobile commerce space has become more important to banks is because consumers are becoming more mobile-centric. In the early days of mobile commerce, PayPal managed to find significant success and growth by engaging mobile consumers. In 2013, PayPal acquired mobile payments firm Braintree, which had control of the Venmo mobile application. Last year, Venmo processed more than $7.5 billion in money transfers between consumers. In January of this year, some $1 billion in money transfers had been handled by Venmo.

Banks want to find the same success that PayPal has seen over the past few years

The success PayPal saw through its early acquisitions is something that banks want to mimic, especially as more consumers become involved in the mobile commerce space. These banks will have an uphill battle, however, as many consumers have already become comfortable with the mobile payments services they are currently using.