PayPal is the most popular way to transfer funds online. Surely, there are numerous reasons to hate PayPal, though that does not make it any less of a contender in the digital payment space. However, online payment is not the only place where a company like PayPal can do business. Perhaps on realizing this after eight years of business, PayPal is trying to compete with mobile-payment startup Square, which has grown to become extremely popular in a year because of its better service. Square lets users pay for purchases with their mobile phones.
PayPal revealed its ambitious plans for its payment business around September last year, and it also announced that it would test offline payment plan with 20 merchants.
Just two days ago, PayPal acquired Card.io, which was another player in the mobile payment segment. However, it made a giant leap in its tests with offline payments, when it tied up with McDonald’s outlets in France. Square, on the other hand, is tied up with Starbucks for carrying out its tests. With this move, Square and PayPal are competing head on for supremacy in the mobile payment field. PayPal has also signed deals with Home Depot and Office Depot for mobile payments.
PayPal’s test lets users pay with a mobile app, and then collect their food from a queue dedicated to this test. This self-service for payment can shave off waiting times and bring profit for McDonald’s or any merchant out there, and bring profits for a supporting platform like Square or PayPal.