PayPal, the most convenient payment network in the world, has announced a breakthrough that could change the way we shop in physical stores. Yes, you read that right, the digital payment platform, starting this summer, will be able to be used to pay at store POS (point of sales) terminals. No cards or the use of Apple Pay (because, for now, only iPhone users will be able to do it), using the PayPal app.
It is still being tested and the pioneers in doing so have been the Germans, but is this the new era of contactless payment?
What is going on?
A regulatory change in Europe now requires Apple to enable the NFC chip of its devices for other companies. PayPal has taken advantage of this opportunity and has allowed its app to work as a wallet on Apple devices, similar to when you double-click for Apple Wallet to appear, but without needing to have it added.
The threat to Apple Pay
This new feature will allow iPhone users to pay by simply bringing their phone close to a terminal that has the NFC chip. There will be no need to open any app, just by double-clicking the lock button, the PayPal option will be activated, allowing payment by default.
And yes, don’t worry because this system will be compatible with any store that accepts Mastercard as a payment method.
Germany, the first country to test
As we were saying, Germany has been the guinea pig of this new proposal. Users will be able to use the latest version of the PayPal app to pay at their favourite stores. And if successful, it will expand to other countries in the European Economic Area (such as Spain, France, or Iceland).
New features
Maybe this won’t surprise you, but PayPal is going to integrate cashback offers and instalment payments into the app. The first new feature, cashback, will return a small percentage of what you spend on your purchases, just like some external apps do, such as Letyshops, for example, but you won’t have to activate anything.
The second new feature will allow you to pay for your purchases in 6, 12, or 24 months, depending on the amount and how comfortable it is for you to finance your purchase. And you won’t have to resort to credit cards or external platforms.
And the security?
Of course, although the new system promises agility in transactions, PayPal has made it clear that digital security will continue to be one of its main priorities, even more so when data thefts and breaches continue to occur. For now, there is nothing for users to worry about.
What is NFC and how does it work?
It stands for Near Field Communication and allows data exchange between two devices that are less than 4 centimetres apart. It is easy and very simple to use because basically, all you have to do is bring your device close to the terminal.
Goodbye to physical cards, hello to the phone
What used to require taking out the card, entering a PIN, or using a specific app, now comes down to just tapping your phone. The opening of Apple’s NFC ecosystem is a victory for competition in Europe.
What is PayPal?
PayPal is a digital payment platform that allows you to send and receive money quickly, securely, and without needing to give your account number or take out your card, and in any currency in the world.
It works as a virtual wallet with which you can pay in online stores, split the bill with friends, or even receive payments for your sales. All from your phone.
Founded over 25 years ago, it shows that if it continues to lead innovation in financial services, it’s for a reason!
