PayPal to Introduce NFC P2P Payment Service

PayPal today unveiled its first NFC-based service, demonstrating peer-to-peer payments facilitated by users tapping their Google Nexus S NFC phones together.

The large online payments service, a unit of Web marketplace eBay, plans to introduce the service in late summer, said Laura Chambers, senior director for PayPal Mobile, who demonstrated the service at the MobileBeat 2011 conference in San Francisco.

“But at PayPal, we’ve said all along that consumer behavior won’t change unless we’re able to offer an experience that’s truly better than what’s available today,” said Chambers in a blog post today. “We’ve been looking at NFC technology for a while, and we saw a tremendous opportunity to combine the best of NFC and the best of PayPal.”

As with other PayPal mobile-money transfers, the funds are still sent over the mobile network, with the sender entering his PayPal PIN code to complete the transaction. But instead of opening PayPal’s app and filling out the fields, users would initiate the transfer by entering the P2P request into a PayPal widget, a sort of miniature application that sits on the home screen. They would then tap their phones on the NFC phones of the persons from which they are requesting money. 

PayPal, which projects it will handle $3 billion worth of mobile payments in 2011–a forecast it has already increased two times–is planning to make the jump to the physical point of sale. NFC is important to its mobile strategy, but is not the only technology it is investigating. And the NFC P2P service is apparently separate from its POS strategy, which it has yet to reveal.

EBay last week announced a $240 million acquisition of m-payment company Zong, which enables users to buy digital goods and have the purchases billed on their mobile phone bills. That followed two acquisitions in the spring–of mobile advertising and recommendations service Where and mobile-payments startup Fig Card, which uses WiFi technology and USB tokens to enable merchants to accept payments from smartphone users at physical stores. PayPal has also offered P2P transfers on Android phones and the iPhone with technology from Bump, which enables users to shake their phones together to make exchanges. The technology uses both the network connection and accelerometers to pinpoint users.

“This (NFC) is just one of the many ways we’re using different technologies on different devices to change the way people pay and get paid,” Chambers said.

The NFC P2P payment service likely will be available only on the Nexus S phones when launched later this summer, though more Android-based NFC phones are expected later in the year that could support the service. And PayPal could develop software for other mobile operating platforms.

According to a video PayPal released today on the P2P service, a user could request money by tapping a request-money button in the widget on her home screen then entering the amount and tapping a separate request-money button. She would then tap her NFC phone against the NFC phone of the person from which she is requesting money and would wait for the phone to buzz. This confirms the request for money has been transferred.

After what appears to be a second tap, the sender would enter his PayPal PIN, which initiates the money transfer over the mobile network. PayPal would send the recipient an e-mail confirming the transfer to her PayPal account.

PayPal would secure the transaction in part with an “encrypted token,” according to reports, but this token does not refer to the secure element embedded in the Nexus S.

 

HEADLINE NEWS

NFC Student ID Cards Launch in Apple’s Wallet, Though Progress Remains Slow for Apple to Add Nonbank NFC Applications

Oct 12 2018

NFC TIMES Exclusive Insight –Three U.S. universities Tuesday launched NFC-enabled ID cards in Apple’s Wallet, with Apple confirming that only three more U.S.

LA Metro Plans NFC-Enabled Mobile App for TAP Card But Holds Off on Open Payments

NFC TIMES Exclusive Insight – The Los Angeles County Metropolitan Transportation Authority, or Metro, plans to introduce mobile payments using NFC phonesbut only supporting its closed-loop TAP fare payments service, not open-loop payments, NFC Times has learned.

Chinese Wearables Makers Begin to Introduce Low-Cost Devices Supporting NFC Payments

NFC TIMES Exclusive Insight – A new smartwatch from low-cost Chinese wearables maker Huami and the latest fitness band version from Huami’s major investor and partner, Xiaomi, both support transit and retail payments–making them among the first budget smart wearables devices supporting NFC payments.

In-Depth: San Francisco’s $461 Million Transit Contract Will Support NFC Ticketing but Not Open-Loop Contactless Payments

NFC TIMES Exclusive Insight – A planned US$461 million contract to upgrade and operate the Clipper fare collection system in the San Francisco Bay Area will include account-based ticketing and a mobile app that will enable customers to tap for rides with a closed-loop virtual Clipper card on NFC-enabled smartphones.

Apple Drops Requirement to Have App Open for Tag Reading

NFC TIMES Exclusive Insight – Apple has relaxed its approach to NFC tag reading in its new iPhone Xs, Xs Max, and Xr models, removing the requirement to have a reader application open in order to use a tag. It calls the feature Background Tag Reading, and it offers essentially the same functionality that Android devices have had for years.  

Fossil Expands Support for NFC Payments, as It Continues Push into Smartwatch Market

NFC TIMES Exclusive Insight – U.S.-based Fossil Group is pushing deeper into the smartwatch market, as it seeks to diversify from the financially strapped traditional watch market. Among the apps Fossil is offering on several new smartwatch models are Google Pay and Alipay, the latter in China.

Google Expands Payments Service in India, Targeting Projected $1 Trillion Digital Payments Market

NFC TIMES Exclusive Insight Google, its eye on India’s projected US$1 trillion digital payments market in five years, has rebranded its Tez payments service to Google Pay and is planning to expand its services, including to Gmail-based payments and, later, NFC.

Fitbit Unveils First Non-Smartwatch Supporting NFC Payments Service, but Progress of Device Rollout Slow

Oct 13 2018

NFC TIMES Exclusive Insight ­– U.S.-based wearables maker Fitbit in November plans to release its first non-smartwatch supporting its payments service, Fitbit Pay, with the recent unveiling of its new health and fitness tracker Charge 3–but as with its Versa smartwatch, released in April, the NFC payments feature will only be available on a “special edition” version of the tracker in the U.S. and likely in some other markets.

Analysis: Three Years In, Samsung Pay Transaction Figures Are Still Nothing to Boast About

NFC TIMES Exclusive Insight – ­Three years after its launch in South Korea, consumer take-up of Samsung Pay remains lackluster, despite the company’s efforts to hype up its newly released figures.

Dominant NFC Chip Supplier Seeks to Move Up Value Chain by Providing More Services

NFC TIMES Exclusive – NXP Semiconductors, the dominant supplier of NFC chips and secure elements for smartphones and wearables, is seeking to push further up the value chain, offering such services as a white-label wallet platform and provisioning of bank and transit payments applications.

More Cities Plan to Launch Transit Ticketing in Google Pay Wallet

NFC TIMES Exclusive – Some major cities plan to enable their transit fare payments in the Google Pay wallet, using NXP’s Mifare 2GO provisioning service, NXP Semiconductors confirmed to NFC Times, adding that the implementations could put the fare-payments applications on secure elements.

Vancouver Transit Authority Plans to Run Open-Loop and Closed-Loop Fare Collection Side by Side

Aug 13 2018

NFC TIMES Exclusive – Vancouver-area transit authority TransLink is seeing modest consumer take-up for its new open-loop contactless fare payments service and around 6% of the contactless EMV credit transactions are from NFC mobile wallets so far, NFC Times has learned.