August 17, 2010
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News: PayPal Behind Closed Doors
It seems like just about everyone is interested in connecting the mobile phone in some way to the credit card industry. Small businesses can really benefit from turning their cell phone into a credit card swiping machine which can assist field sales personnel in closing the deal much faster. Cell phone credit card devices can also assist in setting up appointments for installations when contractors do not have to wait to return to the office before approval takes place. Rumor has it that another popular service company is looking to get in the cell phone action by providing consumers another payment option. PayPal, a leading online provider of payment services has been considering entering the cell phone card payment provider.
The Wall Street Journal recently reported that PayPal executives have been talking behind closed doors on the possibility of competing against the major banks by entering the cell phone credit card payment business. PayPal executives are considering the idea of enabling their customers to link their PayPal account to their cell phone to enable them to use the account to pay for purchases at the point-of-sale. The payment would be made through their PayPal account thereby eliminating the need for a debit or credit card. In a statement to the Journal, PayPal President Scott Thompson said the idea is a "top priority" and, "The tide is coming in and we will take advantage of that."
A number of companies have gotten in on the cell phone payment business over the past year. Most recently a rumor erupted that AT&T, Verizon Wireless, T-Mobile, Discover Financial Services and Barclaycard have joined in to create a new Smartphone application that would virtually replace the user's card. The cell phone credit card technology is already in place in other countries and the U.S. is one of the last to get involved. When PayPal introduces its new service, it will expand the choices of Americans and bring them side by side with other countries.