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

USA Technologies Seeks to Bolster Services, Markets with Acquisition of Cantaloupe Systems

NFC TIMES Exclusive Insight – Unattended point-of-sale vendor USA Technologies expects to close its $85 million deal to acquire competitor Cantaloupe Systems next week, telling NFC Times the deal will add to USAT’s suite of services and expand its international reach.

Orange Cash Gets New Life as Part of Orange Bank App

NFC TIMES Exclusive Insight – As expected, Orange will continue offering its NFC-enabled Orange Cash Visa-branded card with the launch of its Orange Bank mobile service.

First HCE-Enabled JCB Cards to Hit Market in Taiwan in First Quarter

Nov 14 2017

NFC TIMES Exclusive Insight – Japanese credit card company JCB will participate early next year in a mobile wallet from the Taiwan Mobile Payment banking joint venture, marking the first time JCB will support host card emulation in a mobile payments service.

Canadians Take to Contactless Cards, but NFC Wallets? Not So Much

NFC TIMES Exclusive Insight – While a well-developed contactless card and POS terminal infrastructure and strong consumer take-up of contactless card payments has often been touted as the gateway to use of mobile payments, that is often not the case. Take Canada, for instance.

New York Approves Delayed Contract for Contactless Fare Collection, Clearing Way for Rides with NFC Wallets

NFC TIMES Exclusive Insight – The New York Metropolitan Transportation Authority board has approved a long-anticipated contract to enable riders to pay with contactless credit and debit cards, including cards loaded into NFC mobile wallets, by 2019–the largest transit authority to do so since Transport for London launched open-loop fare collection in late 2012.

Fitbit Chief Plans to Enable Entire Product Line for Payments with NFC; Challenges Lie Ahead

NFC TIMES Exclusive Insight – LAS VEGAS:  Fitbit CEO James Park today said the large wearables maker plans to enable contactless payments across its entire range of devices over the next few years using NFC technology, a move he said he hopes will help make contactless payments “ubiquitous around the world.”

Major League Baseball to Roll Out Availability of NFC Ticketing in 2018, but Will Stadiums Adopt the Technology?

NFC TIMES Exclusive – Major League Baseball in the U.S. may roll out NFC mobile ticketing next year as part of Apple Pay, although it’s unclear how many stadiums or other venues would be involved, sources told NFC Times.

Apple Promotes ‘Everyday’ Commerce for Apple Pay as It Seeks to Increase Transactions

NFC TIMES Exclusive Insight – LAS VEGAS:  As Apple continues to try to address what many observers consider to be a disappointing showing for its now three-year-old payments service, Apple Pay chief Jennifer Bailey played up the theme “Everyday (commerce) With Apple Pay,” during a keynote at the Money 20/20 fintech show Sunday.

Group Representing Big U.S. Banks Plans to Issue Own Tokens for Cards Carrying Major Brands

NFC TIMES Exclusive Insight – The Clearing House, a group of the largest banks in the U.S., announced its first plans to tokenize cards branded by a major network, as the banks seek to reduce their dependence on tokenization by the major card schemes.

Apple Watch Likely to Lag Behind in Tag-Reading Ecosystem

NFC TIMES Exclusive – As the NFC tag industry responds to iOS 11, Apple Watch isn’t drawing much focus, and use cases for tag-reading on the wearable remain limited.

Mobile Payments Contribute to Slow Decline of Cash

NFC TIMES Exclusive Insight – Mobile payments are one of the key factors driving the gradual replacement of cash with card and digital payments, according to the annual World Payments Report released this week by consulting and IT services firm Capgemini and major French bank BNP Paribas.

Apple Pay Finally Signs Up Second Major Bank in New Zealand

NFC TIMES Exclusive Insight – In certain markets, Apple continues to face resistance from major banks, which, among other things, do not want to participate in an Apple-branded wallet. That’s true in Australia and in such major Western European markets as France, Spain and Italy, where only one major bank in each country is supporting Apple Pay.