Consumer use of smartphones and tablets is helping to drive the growth of mobile transactions in retail. Chain Store Age spoke about the growing trend with Don Kingsborough, VP retail services, PayPal, which recorded $14 billion in mobile payments in 2012 and expects to exceed $20 billion this year. According to Kingsborough, PayPal is well-positioned to tap into mobile payment growth as it already has three key elements in place: a large consumer base (55 million-plus in the United States), a network of merchant partners and "ecosystem" partners.
Apart from the elements you referred to above, what else is key to getting shoppers to use a mobile payment option?
Additionally, you need to offer value. Tapping and paying today is no different than swiping a card, but creating value is key.
How does PayPal create value?
By offering shoppers coupons or rewards and by creating unique experiences that add convenience or allow them to save time. For example, we are working with Jamba Juice to enable people to order ahead via the PayPal app. After people order, they can go to Jamba Juice and simply pick up their order and walk out. They already paid so they don't need to wait in a line.
What about retailers — are they on board with digital wallets?
I've met with more than 200 large retailers around the world, and every one of them is working on mobile payments because the people who shop at their stores have a desire to use digital wallets that work in-store, online and on a mobile device.
So yes, retailers are on board!
About how many retailers are using PayPal's payment solution?
At the close of 2012, we had agreements with 23 retailers to enable their customers to pay with PayPal in-store, which translates to PayPal being available in more than 18,000 locations in the U.S. And this spring, PayPal will be accepted in millions of more locations through our collaboration with Discover.
What is PayPal's approach to mobile wallets?
PayPal is a 'virtual wallet' — accessible from any number of form factors (card, hands-free, mobile bar code, mobile check-in