Google and PayPal are further deepening their partnership with new functionality that will essentially combine Android Pay authentication with PayPal payments.
For end users, it means that when they’re shopping through Google’s Chrome mobile browser, they can pay with a quick fingerprint scan whenever merchants accept PayPal as a payment option. There is no need to log in or enter financial information, because all of the relevant data is loaded through Google’s Android Pay mobile payments platform. The payment itself, meanwhile, goes through the user’s PayPal account.
While the customer enjoys increased convenience, PayPal and its merchant partners may get to see better sales performance by skipping over the hurdle usually presented by the entry of payment information, passwords, and the like. It’s less clear what Google gets out of the deal. The company may be hoping that it will encourage PayPal users to set up Android Pay accounts for the smoother transaction process; or it’s possible that PayPal is giving it a certain cut of any transaction fees, though this was not outlined in a blog post from PayPal announcing the functionality.
The move comes soon after the companies announced last month that PayPal would appear as a payment option in the Android Pay app.