Paypal Could Easily Corner the Mobile Payment Market if They Got a Clue
Paypal’s name is synonymous with online payments, especially when it comes to paying for Ebay items. A very large percentage of online consumers are already very familiar with the Paypal brand, and a large percentage of online consumers already have a Paypal account. If Paypal was smart they would leverage that consumer familiarity in the form of NFC payments. While Google is still trying to get Google Wallet moving forward, Paypal could easily use their name to gain attention, and utilize their current infrastructure to support NFC payments. Paypal in its current form already can be linked to a bank account or credit card, so if they launched a NFC solution it would already be very easy for them to tie it into your existing bank account or credit card. Of course, you could always just use your Paypal balance also. Another benefit would be that since it’s Paypal, you could still have a debit card to access your funds, unlike Google Wallet who does not provide you with a physical card at all. Unfortunately for Paypal, they just don’t seem to get it. Instead of launching NFC payment capabilities that could be used in stores, last year Paypal launched peer to peer NFC payments. In other words, if you wanted to pay someone using NFC on Paypal, they had to be standing right next to you, both of you had to have a NFC capable phone, and tap the phones together to make the payment. That had to be one of the worst NFC payment ideas I’ve seen, and unsurprisingly it failed. Instead of launching such a useless capability, Paypal should have been focusing on NFC payments that could be made at a merchant. Now Paypal is reportedly focusing its efforts on a mobile payment system that doesn’t involve NFC at all, but would require merchants to have upgraded equipment. You heard it here first, that too will fail. Instead of perpetually going against the grain and launching products that are clearly destined for failure, Paypal should take the most obvious (and simplest) route and institute NFC payments. They would be so far ahead of Google Wallet, and with no other competitor present they’d easily corner the mobile payment market.