PayPal Joins the Foray Into the World of Mobile Payments With Android Wallet
If you have been paying any attention to tech news, then you can see that mobile payment has quickly become the darling technology which all vendors want to get in on. And with little surprise. With consumer spending decreasing, banks need to do all they can to make it easy for customers to spend money and use their services.
However, how can payment services which don’t offer physical cards or access to a branch reach and address this trend?
This is where mobile payments come in. In this instance, Android Wallet.
Included in all Android phones running Android 4.4 of above, Android Wallet allows users to simply hold their phone against a vendor payment device, such as a card reader in a store, and make their purchase. This service also extends throughout an Android-powered phone by way of allowing mobile payments for apps and subscription services, along with purchases like grocery shopping online or renewing an order through the Groupon Coupons page for MediFast Diet.
By teaming up with Google’s Android Wallet platform, PayPal, a company which provides financial services for millions of customers across the world, however, has no physical presence or customer infrastructure, how has access to a payment mechanism which is easily interoperable with their back end systems.
Launching in the coming months, Android users will soon be able to easily link their currently authorized and confirmed PayPal accounts with Android Wallet. While only bank accounts can be used at Launch, PayPal advises that credit cards stored with PayPal’s services will soon have access to Android Wallet.
One of the biggest benefits to services connections such as this is the reduction of how many services a customer needs to register their secure payment details with. After all, each time that you enter your card details, you are trusting that the vendor will keep them secure.
PayPal has established themselves as a market leader in secure payments, with many of their customers using PayPal as their sole payment method, refusing to provide their credit card or bank account details to vendors or merchants directly.
This announcement will soon allow these users to expand the places they can comfortably use their funds and access PayPal accounts, including in-store, online, and within the Android operating system itself.
With Apple quickly taking over the mobile payment world with their popular Apple Pay service included in all iPhones and iPad products, Google and Android Wallet need to everything they can to entice the customer to continue using their phones and services.
While this announcement might not affect every Android user right now, it sends a powerful message to vendors and merchants alike that customers are looking to expand their payment options beyond physical cards. If received well, this message can be taken as a forewarning, allowing merchants to establish contracts and connects in advance.
If not, many stores and merchants could see themselves playing catch up when it may be too late. After all, the earlier you make a contract with a supplier into a new trend, the more favorable the terms of the deal will be. Once a service is established, and customers are flocking to it, the owners of the service are free to charge whatever they like for the access.