PayPal has given merchants and others a peak at the technology that it says will change the future of payments at the point of sale in the U.S. and move past the dominance of Visa and MasterCard in the industry.
The new suite of payment services relies heavily on mobile phone technology and in many cases bypasses point-of-sale terminals, according to reports from media outlets which were allowed to view the technology and a video the company produced.
Among the specific technologies displayed were an approach which will let a user enter a telephone number and a personal identification number with the amount then charged to a bank account or card associated with the number.
Another approach will allow the user to swipe a PayPal-issued plastic card at the point of sale. The card will not have an account number nor carry a Visa or MasterCard logo, but will require the use of a PIN.
Larger items will be purchased in a store by scanning the item's barcode which will allow PayPal to find that exact item in stock with the retailer and allow the user to purchase it from the aisle and arrange for it so be shipped to their home address, according to media reports.
PayPal will also have the ability to provide credit for the item, allowing the user to purchase it and pay for it over a set number of payments.
The payments company expects merchants to like the new services because, unlike contactless payments or EMV payments, they do not require any change in payment hardware. In addition, relying on mobile phone technology will allow users to “check in” when they enter a store and receive targeted marketing or other sales support automatically.