PayPal and Google have inked an agreement which will enable users of Android Pay to pay using the PayPal app just by tapping their smartphones. This will be in thousands of retail locations across the United States. With the partnership, holders of PayPal accounts will be able to fund their Android Pay accounts using the popular payment system.
“Android is the biggest operating system in the world – and our job is to enable commerce in a variety of new contexts,” the chief operating officer of PayPal, Bill Ready, said.
Some of the retailers where it will be possible to use PayPal via Android Pay includes restaurants such as Dunkin’ Donuts and drug stores such as Walgreens Boots Alliance. Holders of PayPal accounts will also be able to pay for Uber rides this way. The deal will give PayPal a wider reach and will also raise the frequency of use since average customer of the service uses it for an average of between two to three times a month.
As one of the pioneer payment platforms on the internet, the dominance of PayPal has been waning in recent years due to the threat posed by Android Pay and Apple Pay which come preloaded on Android devices and iOS devices respectively. This has been evident for more than two years now with PayPal usage falling especially over the rising Apple Pay use. In 2016, the volume of mobile payments on PayPal reached $102 billion from mobile payment transactions numbering two billion.
In the recent past, the chief executive officer of PayPal, Dan Schulman, has been forging partnerships with wireless carriers, credit card issuers and banks in a bid to transform PayPal from being just a payments button on sites into a financial tool that can be utilized to pay in physical stores. It is also increasingly becoming a cross-border money transfer tool. Already, PayPal has been a payment method on the digital content and app store, Google Play, for three years now.
Besides Google, some of the organizations that PayPal has partnered with recently include Discover which allows customers of PayPal to use their Discover cards in making payments at stores where contactless payments are enabled. Holders of PayPal accounts can also make online payments via PayPal using their Discover account without having to first link the accounts through ACH. The pioneering online payments system has also inked similar agreements with Mastercard and Visa. PayPal is however yet to link to Apple Pay.