The new payment services that PayPal plans to launch, will be heavily dependent upon mobile device technology and will often circumvent point of sale terminals entirely. These reports are issued by select media outlets which were availed of a sneak peek at the new technology and a video presentation produced by PayPal, according to cutimes.com.
EBay revealed, at a recent los Angeles-based event, the new PayPal technology to over a hundred large-scale retailers, in an attempt to push its virtual payment business into the real world. Here’s how it will work:
The technology behind virtual card was based on debit card business experience already garnered by PayPal with its debit and credit card. The PayPal card is designed to be compatible with merchants’ existing credit card machines, meaning that consumers can swipe the PayPal card to pay the same way they would any other credit or debit card. This is appealing to merchants because it means that they do not have to undertake the task of installing new payment systems or hardware to participate with this new PayPal card.
With this new technology, consumers wishing to pay using their PayPal account can do so either by waving their Smartphones near terminals or by punching in the digits of their mobile phone number, revealed Sam Shrauger, vice president of Global Product and Experience at PayPal, according to SFGate report.
Another enticing element for merchants is the possibility of marketing promotional discount offers directly to customers, through the PayPal “virtual wallet” service, which will then be credited automatically to their PayPal account, should a customer opt to purchase the particular product that is being promoted.
Some benefits for shoppers include ability to change the means by which procure purchase funding. For example, they could shift the purchase from a credit card to a debit card or vice versa, Shrauger explained to the website SFGate. PayPal users could also divide their final purchase amount into smaller chunks and pay it off in installments that are billed in increments to their bank account, PayPal account or credit card.
Additionally, all receipts are stored in PayPal accounts, says Shrauger.