Paypal Launches Response to Mastercard Smartphone App: New Mobile Express Checkout Enables One-Click Buying

Jul 10

MikeGeneral Business Practices, Web & Legal , , No Comments

According to Ebay mobile is the future of ecommerce, a view which is reinforced by recent figures from Juniper Research which predict mobile payments will reach $200 billion over the next 18 months.  So it is natural for Ebay for to want to ensure it is top of the tree when it comes to mobile payments through Paypal.

Paypal launched an app for smartphone transactions only last year and as the uptake of smartphones have increased so has the growth in mobile transactions.  This year alone Paypal has predicted a turnover of more than $500 million in mobile payments and that more than 5 million of its members will be actively using Paypal via their mobiles.  Now they have made it even easier to pay for goods through smartphones with the release of the new Mobile Express Checkout app.

Up until now checkout procedures could be time consuming so this new app aims to streamline the process with a one-click buying option.  If you have regularly bought goods from Amazon you will already be familiar with this type of service, which stores consumer’s shipping and payment details for the next time they place an order.  All a customer will need to do is login with their Paypal account details.

Of course, making payments through smartphones have been met with some concern over fraud, identity theft and the like.  Paypal however says the new app has been optimized specifically for smartphones and features strong fraud detection.

Initially the app has been released to users of the iPhone and Android 2.0 or higher and is only available to customers of a select few retailers like Nike and Buy.com.  Paypal are working to make the app available to more retailers over the coming months.

The launch of this app means that Paypal’s 85 million users will now be able to purchase goods via their smartphones faster than before and unlike other mobile payment apps, users will not have to input their credit card details each and everytime.  Users of smartphones are sure to welcome this as inputting shipping and billing details on a phone is an arduous task at the best of times!  So it would seem that Paypal gets a jump on the competition once again and is leading the way when it comes to the future of automated mobile payments and mobile ecommerce.  I don’t doubt though that Mastercard et al will soon be following suit!

Paypal Beware: MasterCard is Determined to Capture Market Share

Jun 08

MikeWeb Industry , , No Comments

Until now, Paypal has held the market share when it comes to financial transactions using online and mobile platforms.  Recently, MasterCard released the Moneysend app that enables iPhone and iPad users to transfer money to other accounts quickly and easily.  Powered in part by Obopay, users can send and request money through banks and credit unions using the free app with either an existing MasterCard or bank account.

MasterCard is determined to take Paypal on; they have also announced a plan to open up its’ payment gateways to developers who want to build and enhance the online platform and mobile apps.  (As you may know, Paypal released their API Paypal X at the end of 2009.)

So what are the benefits of this new app?  I’m not sure if it’s a benefit but unlike Paypal, users of MoneySend will incur a transaction fee at the front end (sending the money) while the recipients won’t be charged a fee.  (Paypal recipients incur the transaction fee, if any.)  And security?  It’s always a concern when it comes to the storing of financial information via electronic devices such as phones.  But MasterCard have made moves to assure users of the app that it is secure and that all personal and financial information will not be stored locally on the iPhone or iPad.

Since eBay purchased Paypal, all traders are required to have a Paypal account in order to sell through via eBay.  This in itself may be the biggest factor in the success of the Paypal app and most likely the reason MasterCard will struggle to convert users – especially as MoneySend charges to send payments unlike Paypal.

Paypal is a giant – there’s no argument there.  MoneySend is the first app to be released by another major financial-focused company but so far it’s slow to gain traction and is currently only available in the US.   I respect the ambition MasterCard has; they have clearly spent time and resources developing the MoneySend app in a bid to lure users away from Paypal.  Truth is, Paypal has a strong brand and very wide appeal, something which could be tough to beat – even if your name is MasterCard.  Only time will tell…