PayPal on pace to process $10B in mobile payments in 2012
PayPal said it expects to handle $10 billion in transacted mobile payment volume in 2012, an increase of 150 percent over a year ago.
eBay-owned PayPal's mobile commerce initiatives include PayPal Here, introduced in March, which enables small businesses and other users to process credit and debit transactions by swiping the card through a small, triangle-shaped dongle that attaches to their smartphone or tablet. Users also can access their mobile device's camera to scan and process cards and checks. PayPal Here charges merchants a flat rate of 2.7 percent per transaction, a .05 percent savings over rival Square's mobile payment offering.
More than 300,000 merchants in the U.S. and Hong Kong have signed up for PayPal Here, PayPal President David Marcus announced Wednesday on the firm's blog. "PayPal Here merchants can use their PayPal business debit card for quick access to their funds, with 1 percent cash back on eligible purchases," Marcus added. "So when merchants use the PayPal debit card, our rate drops to an incredibly low 1.7 percent."
In addition to PayPal Here, eBay-owned PayPal launched mobile wallet consumer trials in early 2012 across about 50 Home Depot stores. Within weeks the initiative expanded to all 2,200 Home Depot locations in the U.S., and in May, PayPal rolled out the service to 15 additional nationwide retail chains. "Abercrombie & Fitch beta-tested, and began rolling out PayPal point of sale to 900+ stores across the U.S. in just over four weeks--in time for the critical Back-to-School shopping season--and Jos. A. Bank began expanding its pilot in Q2 to a full national rollout of 566 stores," Marcus said.
Earlier this week, PayPal acquired card.io, which develops credit card data capture technology integrated into applications including PayPal Here. Created by AdMob veterans Mike Mettler and Josh Bleecher Snyder, card.io automatically reads credit card information using a smartphone's camera, enabling merchants to process transactions without swiping the card through a hardware extension or inputting account information. Terms of the deal were not disclosed.
- read this PayPal Blog entry
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