PayPal Customers Can Soon Make In-Store Payments With Android Pay
PayPal has partnered with mobile payment service Android Pay in a bid to extend its market presence on online stores, as well as brick-and-mortar outlets.
The the two companies signed the deal on April 18. The partnership would enable Android Pay users to carry out transactions using PayPal online, via mobile apps, or in stores — wherever the mode of payment is accepted.
"Consumers in the U.S. will be able to use PayPal in Android Pay at retailers from Walgreens to Dunkin' Donuts. This partnership will enable our customers to pay across even more contexts, and will extend PayPal's mobile leadership and reach as consumers become more comfortable shopping and buying on their mobile devices," noted PayPal.
What Does The Partnership Entail?
Initially, PayPal will let Android Pay users purchase or make payments using their PayPal account balance. However, the company is poised to introduce an update at a later point of time, which would allow users to make payments using the cards linked to their PayPal accounts through Android Pay.
With the Discover integration, PayPal will be an accepted mode of payment for the Android Pay wallet wherever both are accepted.
PayPal has been looking to expand its reach over the current market where Apple Pay has become the dominant mode of payment. PayPal stated that it sees great potential for the mobile wallet apps in the future. The company revealed that in 2016, it processed over $102 billion in mobile payments, as well as 2 billion payment transactions made via the mobile.
PayPal Competing With Apple Pay?
In February, Boston Retail Partners performed a market analysis, which revealed that Apple Pay outpaced PayPal to become the most widely-used payment service.
Another study from Juniper Research indicated that Apple Pay would reach 86 million users globally by the end of 2017, whereas Samsung Pay and Android Pay would be able to garner 34 million and 24 million users, respectively.
PayPal seems to be trying its best to regain the top spot in the most popular mobile payment service race. Previous deals by the company have also been in a bid to dethrone Apple Pay as the most used mobile payment wallet.
PayPal's Expansion Efforts
In summer 2016, PayPal inked a deal with Visa. This partnership enabled customers to use the service to make payments in stores via their smartphone. A similar deal was drawn out between PayPal and MasterCard, which also allowed customers to use the card when making payments through PayPal.
PayPal has also signed a deal with Facebook regarding the Messenger app and the party e-commerce bots, which are present in the popular messaging application.
All these efforts likely resulted in its revenue growth in the last quarter. Each share earned the company 42 cents, taking the revenue in the fourth quarter to $2.98 billion.
PayPal will be available for Android Pay devices on Android OS 4.4 or higher.
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