Paypal CEO on taking on Apple, Google in mobile payments

Paypal CEO on taking on Apple, Google in mobile payments


Ina Fried: The other area that it seems like
is less important, at least for the PayPal brand, is sort of this in-store experience. For a long time you guys were trying to find
a way in to, I go to the store, and I somehow pay with my PayPal account. Today I’m paying with more digital payments
than ever. Apple Pay, Google Pay. Not seeing PayPal as much. Is it important to have a place in the physical
retail store for PayPal? Dan Schulman: The short answer to that question
is yes, it will be important for us. And that’s, to your point, only because it
is now beginning to take off. Before it was kind of a solution in search
of a problem because, you know, your credit cards didn’t really weigh you down in your
pocket. You could do a transaction, quite simply and
easily at a point of sale by tapping that versus tapping your phone. And I always thought if it was just a form-factor
difference like the difference between using a debit or credit card or tapping a phone,
that was it. It would never really begin to take off. Schulman: What I’m beginning to see right
now is so that you can do different things now by tapping a phone. You can actually figure out right at that
point of sale, do I want to use rewards points to pay for that transaction? Do I want to split that transaction between
rewards points and fiat currency? Do I want to actually do some of that, pay
for it out of a debit card and put some of that on credit? So there’s a lot more flexibility. There’s a lot more of a value proposition. If I order ahead on my phone, I could skip
a line. I can pick up the product right away. I don’t even have to check out. I can just leave the store. So I think that value proposition is beginning
to pick up. And as a result, you’ll see PayPal increasingly
become a part of the physical world as well as the digital world. Fried: So how does PayPal get back in? Because basically you’re not a presence today. Even less so than maybe a couple of years
ago. How does PayPal get back in there? Schulman: Relatively simple QR codes are something
that we have today. QR codes are something that more and more,
I would say micro and small businesses will start to use. And the relationships we now have with all
of the networks and all of the major financial institutions allow us to use industry standard
tokenization and NFC capability, which is what Google Pay and others use. And so we can actually simply put in a PayPal
wallet experience for physical stores and anywhere those other wallets are accepted. It’s exactly the same technology. It’s near-field communications technology. We’ll be able to use those as well. Fried: How soon will we see that? And will it be PayPal-branded, Venmo or both? Schulman: So it should be both PayPal and
Venmo. That will be able to go do that and we’ll
start to roll that out as early as next year.

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