PayPal today announced a new in-store payment called API, in Australia which would allow retail customers to make payments without cash or a credit card. The company's latest move comes as payment companies, banks, telcos and tech companies look to emerge default mobile digital wallets of customers.
The new PayPal Here API, allows customers to check into the store they are visiting by opening the PayPal mobile app. Their customer's profiles can be seen by stores on their point-of-sale (POS) terminals, which can be used to charge the customer's PayPal account by tapping his or her picture.
According to PayPal, it had already signed up several Australian retailers for the service. It added, Sonoma Bakery, Guzman Y Gomez, Glue Store and Crayons would also introduce the in-store payment system.
A PayPal spokeswoman told Computerworld Australia, that PayPal charged a merchant service fee for check-in payments along lines of credit card fees.
She said, PayPal's fees ranged from a standard rate of 2.4 per cent plus $0.30 per transaction to a minimum of 1.1 per cent plus $0.30 per transaction, which is on par or a slight premium to credit card prices.
PayPal managing director for Australia, Jeff Clementz said at the launch of the service in Sydney that PayPal did not expect all retailers to adopt the technology right away. He added, the company viewed 2012 and 2013 as a chance to put out the technology, observe consumer behaviour and get feedback from partners.