With mobile developments reshaping the payments landscape, AFP brings together the top mobile payments trend information to help corporates track this evolving industry. This feature appears monthly in AFP’s Payments newsletter. Follow @Mobile_Moves on Twitter for all the latest updates. PayPal Teams with 23 U.S. Retailers, NCR
PayPal said this week that 23 large U.S. retailers representing 18,000 stores are now equipped to accept PayPal payments. Additionally, the e-commerce giant announced a deal with NCR that will give it even more access to brick-and-mortar stores.
PayPal reported at the National Retail Federation show in New York this week that it has exceeded its May 2012 goal of signing up 20 large U.S. retailers for its mobile wallet service by the end of 2012. PayPal’s service differs from many other mobile wallets in that customers need only enter their phone number and a PIN to make payments.
Retailers now accepting PayPal include Famous Footwear, Dollar General, Mapco Express, RadioShack, Spartan Stores, Abercrombie & Fitch, Advance Auto Parts, Aéropostale, American Eagle Outfitters, Barnes & Noble, Foot Locker, Guitar Center, the Home Depot, Jamba Juice, JC Penney, Jos. A. Bank Clothiers, Nine West, Office Depot, Rooms To Go, Tiger Direct, Toys “R” Us and two additional partners that will be announced soon.
The NCR deal expands PayPal’s network even further. PayPal will now be available as a menu option for the recently announced NCR Mobile Pay app, which allows restaurant patrons to review orders and pay. PayPal also will be integrated into NCR’s Convenience-Go (C-Go), a store-branded app for making payments at gas stations and convenience stores. NCR will also enhance its Netkey Endless Aisle app so that consumers can use PayPal to either buy items in-store or order out-of-stock items.UK Banks Commit to Mobile Payments Service
Financial institutions representing 90 percent of current accounts in the UK have committed to the spring 2014 launch of the UK Payments Council’s mobile payment service. The Payments Council said its service will allow for secure payments to be made directly from an account using a mobile phone number, without the need to disclose account details. The new service will move money between accounts using the Faster Payments Service and the LINK interbank ATM network.
The Payments Council recently surveyed more than 5,000 consumers and found that one in three smartphone users is likely to sign up for the mobile payments service. The survey also highlighted the importance of security in mobile payments. The Payments Council noted that, at minimum, a passcode or similar security feature will be required to authorize payments. FIs will also be able to disable an account in the event of suspicious activity.
The Payments Council is currently working on minimum service standards for security, speed and other technical requirements. One-Third of Europe to Use V.me by 2020?
Visa Europe is rolling out its V.me digital wallet this year in the UK, France and Spain. UK banks representing 80 percent of consumers are already committed, and Visa expects one-third of all Europeans to be on board with the service by 2020.
V.me allows users to complete online transactions through internet browsers on their smartphones, tablets, PCs and laptops. The service is particularly concerned with security and shields customers’ card details from online merchants. Visa said that V.me will also eventually incorporate contactless transactions at the point-of-sale and person-to-person payments.
Additionally, Visa continues to roll out contactless payments for cards and mobile devices in Europe. Contactless transactions in Europe quadrupled in 2012 and Visa expects repeat growth in 2013. Visa noted that 40 issuers will be offering mobile contactless payment services by the end of the year and 80 types of smartphones will be certified by Visa to complete contactless payments.