PayPal has begun testing new mobile payments software at five Home Depot stores in the U.S., according to American Banker.
PayPal’s system offers an alternative to NFC-based mobile payments solutions like Google Wallet, enabling consumers to make payments directly from their PayPal balance by simply punching in their phone number and PIN. Merchants also have a comparatively easier time adopting the system, as it only requires updated software rather than new point of sale equipment.
PayPal may in fact have the jump on Google Wallet, as the company currently boasts more than 103 million active account holders – none of which require updating their handset or downloading an app to use PayPal’s point of sale system.
Additionally, many active PayPal users have balances left over from selling items on eBay or receiving peer-to-peer payments. Since that money is just sitting there without accruing interest, many will be looking for a way to spend it, says American Banker.
According to Wedbush analyst Gil B. Luria, the trial is on a “friends and family” basis for the time being, but will eventually evolve into a nationwide rollout.
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