According to the source, the potential launch is part of PayPal’s strategy to bring its payment services into physical stores. PayPal’s in-store system relies on integrating PayPal software into existing point-of-sale terminals to allow users to pay either by swiping a PayPal pre-paid cards or by inputting their phone numbers and PIN, which connects to their accounts.
Consequently, a mobile payment acceptance service would allow PayPal to target smaller businesses with one or two locations and provide them with the ability to process card transactions. This would also bring PayPal into direct competition with more established m-payments processor Square.
In recent news, PayPal has entered an agreement with US-based mobile payment company Tabbedout to allow consumers to pay using their PayPal accounts. The PayPal integration is set to be rolled out in March 2012 at select Tabbedout locations in Austin, Texas.
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