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PayPal Tests NFC in Sweden
PayPal may be ambivalent towards near-field communication as a wireless payment technology, but it has been making great strides into using the technology for facilitating payments. As we have reported earlier, Paypal is not necessarily bent on making near-field communication as a payment option, at least not exclusively. It has been using different technologies because it said that NFC is still in its infancy with only 18% of retailers expected to have NFC-based payment systems by 2013. Paypal’s parent company’s Ebay’s CEO John Donahue was also quoted to have said that NFC stood for “not for commerce.”
But because Paypal is the second most trusted way to pay wirelessly, getting Paypal to pay attention to NFC is a big boost to this technology.
And it did give NFC a big boost earlier this month when it launched a trial run of its NFC Payment App in Stockholm, Sweden, just in time for the Christmas holidays.
The trial run will involve two retailers: electronics retailer Webhallen and ski and sports equipment seller Alpingaraget, which will debut the new Paypal Instore and smart tags to help consumers complete the transaction.
Customers would need to download and install the app and swipe their phones to make a purchase.
Catrine Rhenberg, PayPal’s head of Consumer Engagement for Central, Northern and Eastern Europe has said that employees from the company will be on hand to educate people on how to use the mobile app and their phones, how to pay, how to access discounts and how to put the smart stickers on their phones.
This isn’t the first time that Paypal introduced an NFC-enabled mobile app. Last month, they also launched an updated Android app that featured NFC payments done between two people. This means that your friend can now transfer any amount of money to you just by touching your phones together.