PayPal announces retail expansion of its mobile wallet service
PayPal has announced that it is expanding its mobile wallet service to five new U.S. retail partners. This will increase the number of stores that accept mobile payments using the PayPal mobile wallet to 18,000 nationwide. PayPal has shown an intense interest in mobile commerce over the past year, hoping to engage a new generation of consumers that prefer to make purchases using their mobile device rather than traditional forms of payment. PayPal is one of the few companies that is ideally suited for the emerging mobile commerce arena because of its longstanding focus on digital commerce.
Company signs new deals with several retailers
PayPal has signed new agreements with RadioShack, Dollar General, Famous Footwear, Mapco Express, and Spartan Stores, as well as two other retailers that have not yet been identified. These stores will feature support for PayPal’s mobile commerce processing technology, which will allow consumers to purchase products using their smart phone with funds that are associated with their PayPal account.
Mobile wallet from PayPal avoids NFC technology
PayPal launched its mobile wallet in early 2012 to a limited market. The company has been testing the mobile commerce waters ever since, making modest advances in its hold on the market and showing caution in terms of consumer security. Notably, PayPal’s mobile wallet does not support NFC technology, which has become a common foundation for the mobile commerce sector. This is because PayPal was unconvinced of the security features that were associated with the technology, opting instead to institute its own technology and software to ensure the protection of its customers.
Success of mobile wallet may put PayPal on par with Google and Isis
The company has been championing its alternative to NFC technology for several months, suggesting that it provides consumers with a more secure way to participate in mobile commerce. By expanding its retail partnerships, PayPal is looking to make its wallet more available to a wider audience. If the company’s service continues to provide successful, PayPal may soon emerge as a major competitor with others in the mobile commerce sector, such as Google and Isis.