PayPal is expanding from its former digital and credit card payments options. This may be the first of many implemented mobile payment options. However, competition remains high, especially concerning security issues.
Home Depot will be the first analog chain to support PayPal at the cashier. The eBay-owned digital payments company will be deployingits POS-compatible system at 2,000 Home Depots across the US in the next two weeks. Customers can use a PayPal card or their mobile phone number and PIN. This can only be seen as the first of many such brick-and-mortar store programs, made even more likely by PayPal’s statement that it is increasing its efforts in carrier payments. Their acquisition Zongis a “frictionless mobile payments” product that lets customers make purchases with their mobile number.
Digital wallet solution providers compete over security matters
The mobile payments space is becoming even more heated with plans from many brands finally being implemented. Just as Zong is competing with a similar service called Boku, PayPal can expect to see plenty of players enter the digital wallet category. Visa is working on one such entry called V.me, a service that makes payments without sharing card information with the seller, and can link to other types of cards, including MasterCard, American Express or Discover. As they develop this service, they are simultaneously criticizing PayPal for potential security issues, since thieves can possibly see customers enter account information on the POS keypad.
Retailers’ trust is hard to win
Security issues are frequently brought up when finance or payment related tech are being discussed. This concern is not limited to the mobile payment era, though - which PayPal addressed in its retort to Visa. The payment company responded that financial information cannot be stolen from a customer’s wallet, card or phone if the account information is memorized account data. According to their own accounts, PayPal has the lowest loss rate in online payments history. Point-of-sales innovation is disruptive, though, and Visa’s problem may more accurately line up with potential loss of revenue as merchants support PayPal’s POS system and pay less credit card support fees.