PayPal CEO announces NFC payments expansion

Vodafone Wallet with PayPal NFC-enabled payments is now live in Spain and is expected to be made available across Europe throughout the “back half of 2016”, PayPal CEO Dan Schulman revealed during the company’s Q1 earnings call. He also discussed the new PayPal Android app that brings with it NFC functionality.

PayPal“Our partnership with Vodafone in Europe will have tens of millions of European customers [able] to use PayPal as their preferred way to fund their payments,” Schulman told investors. “We are now live in our first market, Spain, and we anticipate expanding across Europe throughout the back half of 2016.

“Our partnership with Vodafone delivers what consumers, businesses and European regulators want — better products, more choice and greater transparency.”

“The mobile app is a fundamentally redesigned app,” Schulman said in answer to a question about how the new app — unveiled at Mobile World Congress earlier this year — changes PayPal’s in-store value proposition. “It really brings us into the mobile world. It puts up front the things that customers want to go out and do, it doesn’t clutter it up.”

Consumer engagement

“It’s simple, easy,” Schulman added. “It’s driving increased consumer engagement and it also enables us, for consumers, to now be able to use their mobile phone in-store whether that be through NFC or QR codes. The way that I think about in-store is really in-store, online, in-app — they’re all coming together. It’s just commerce is the way to think about it.

“It’s all moving towards mobile and we basically want to be able to utilize for merchants this underlying platform so that we can be their OS, do 100% share of checkout, enable merchants to create their own application, tie their rewards into our platform, do things like split tender at checkout and create a real value proposition change for consumers so that merchants can use mobile to get closer to their customers.”

PayPal processed US$21bn in mobile payment volume during Q1, a growth of 54% from the same period last year and the number of payment transactions per active account increased to 28, up 12% from 2015. PayPal’s Venmo P2P mobile payment app also processed nearly $3.2bn in payment volume in Q1, up more than 150% from last year.

Vodafone Wallet partnered with PayPal to enable PayPal NFC payments through the service in February this year.