Tag: paypal mobile payments

PayPal claims NFC technology is hurting retail

| January 29, 2013

PayPal snubs nfc technologyPayPal continues to snub NFC technology in mobile commerce

It is no secret that PayPal is not a fan of NFC technology. The technology enables mobile devices to collect and distribute information over very short distances. While the technology has seen use in marketing, its most well known for its uses in mobile commerce. NFC technology can effectively turn any mobile device into a payment platform, allowing consumers to make purchases for goods and services using nothing but their smart phones or tablets. While the concept of mobile commerce has becoming very attractive to consumers, PayPal believes that its reliance on NFC technology is a fallacy.

Use of NFC technology may lead to failure

In the past, PayPal has been somewhat outspoken in its opposition of NFC technology. Recently, however, the company has been growing more aggressive in its stance on the matter. According to David Marcus, president of PayPal, the technology may actually be harmful for the retail industry, which has come to embrace mobile commerce in a big way. Marcus suggests that NFC is not the right technology to facilitate mobile payments from consumers and that the more retailers focus on its use, the more likely they are to meet failure.

Poor experiences create tension in mobile commerce

Marcus suggests that NFC technology created a very limited experience for consumers, especially with their relationship to a retailer. Despite the somewhat simplistic nature of NFC technology, Marcus claims that consumers often have a bad experience when making purchases with NFC-enabled devices at retail stores. The president of PayPal notes that this experience is largely due to the fact that consumers are forced to make use of physical NFC terminals in order to make a purchase, rather than make purchases wherever they are using their Internet connection on their smart phone or tablet.

PayPal investing in alternative solution

PayPal has been investing heavily in an alternative to NFC technology. The company has been working on building a multi-channel solution that will allow consumers to make mobile payments without having to interact with a physical terminal or checkout system. The solution that the company has been investing in is meant to facilitate payments in-store and online, providing consumers with more flexibility in their mobile commerce interests.

eBay predicts major growth for 2013

| January 20, 2013

ebay mobile commerceeBay and PayPal gear for mobile commerce growth in 2013

Online retail giant eBay saw major gains during the 2012 holiday shopping season, largely due to the company’s focus on mobile commerce. eBay is predicting that its mobile payment volume in 2013 will reach new heights as it puts more focus on engaging consumers with mobile commerce services. eBay notes that PayPal, one of its primary subsidiaries, will have a large role to play in the mobile commerce growth the company is expecting to see in the coming year.

eBay predicts mobile payment volume to exceed $20 billion

eBay is expecting to see mobile payment volume grow to more than $20 billion in 2013. PayPal is expected to handle the majority, if not the entirety, of this mobile payment volume, similar to what the company had done during the 2012 holidays. In 2012, eBay reported some $14 billion in total revenue for the entire year,  up 21% of the revenue the company had generated in 2011. The company notes that one of the contributing factors to this growth was its focus on mobile commerce.

Company works on streamlining mobile services

In 2012, eBay mobile accounted for $13 billion in volume, according to CEO John Donahoe. The company’s various mobile applications attracted more than 4 million new users throughout the year, adding significant clout to the company’s already formidable presence in the mobile space. eBay is now working to streamline its mobile ventures, hoping to make them more accommodating of new customers and to bolster the mobile commerce services the company has to offer.

Consumers show interest in mobile commerce

PayPal is expected to add significant momentum to the mobile commerce plans of eBay. Consumers mostly had a positive experience with mobile commerce during the 2012 holidays, so eBay is likely to push for similar results near the end of this year. These consumers have shown their interest in shopping and making purchases using their mobile devices, thus setting up a great deal of promise for the 2013 holiday season.