PayPal is taking another big step into mPayments with its announcement that it will enable NFC technology for in-store payments.
The digital payments company had previously appeared wary of the technology, but it seems that now that NFC is gaining traction with merchants and card issuers around the world, PayPal is ready to come around. A recent report from TechNavio predicts that between 2015 and 2019, the NFC chip market will grow at about 50.6 percent annually (CAGR), and indeed with the major mPayment platform Apple Pay relying exclusively on the technology for in-store mPayments, merchants may have more incentive than ever to adopt NFC readers at the point of sale.
For its part, PayPal has partnered with MNO Vodafone to enable the technology, and says it will introduce NFC payments in Spain this week, with support coming to other European countries to follow soon after. Starting in the second quarter, NFC support will also come to the US and Australia.
The move follows a recent revamp of PayPal’s mobile app, which offered a redesigned user interface and new features highlighting PayPal’s growing focus on mPayments. The maneuvers suggest the digital payments brand will increasingly come into direct competition against the likes of Apple Pay, Samsung Pay, and Android Pay around the world.
Sources: Mobile World Live, Research and Markets