|
PayPal is taking the express lane to in-store mobile payment dominance -- but competitors' efforts and consumer suspicions may block the road to success.
PayPal is joining forces with several major retailers, including Toys R Us and Barnes & Noble, as it solidifies its retail presence to boost its movement into mobile payments. The eBay-owned company signed deals to partner with sixteen major retailers in total, starting with Home Depot several months ago. PayPal also inked a deal with VeriFone Systems, which will help it establish smooth in-store services using VeriFone's payment software. "An important part of our future is to get to ubiquity," PayPal exec Don Kingsborough explained. "There will be 40 million terminals eventually to let consumers buy in stores with PayPal. That's one of the big building blocks we have to get to ubiquity." PayPal is off to a solid start and has an established online payment history behind it, but the company will have to reprove its security credentials to entice in-store customers visiting brick-and-mortar retail locations. The company is buddying up with large, trusted retailers and gradually adding waves of partners to ensure success in this arena, but it still faces stiff competition from upcoming mobile payment alliance Isis. PayPal's name recognition and a strong reputation alone won't be enough to topple Isis, which is making a concentrated, comprehensive effort to offer exemplary security. The big banks and phone carriers attached to the Isis project may convince people to give Isis a whirl. Both mobile payment options, along with rivals Square and Google Wallet, must contend with consumer reluctance to trust mobile payment systems and fuel their adoption. PayPal's decision to directly link to trusted stores may assuage some wariness, but if the company's security is compromised even once it could devastate its reputation. Inking the retailer deals set the company on the right path, but to surge ahead of Isis and other rivals, the company needs to keep making alliances with retailers and cementing its place as a convenient and safe payment option. |
Tags:
