The secure credit card oligopoly is now facing competition from alternative forms of payment at many online digital transactions at retail stores, the largest and most recent competitor coming in the form of PayPal.
PayPal has now taken an even farther step out of the digital world and is looking at ways to bring its dominance into the real world. At the moment, the popular internet banking system is considering how to make it possible to allow consumers to link their PayPal account with their mobile phones so that they can swipe the mobile at a sale terminal. The money would be deducted directly from the PayPal account with no plastic required.
President of PayPal, Scott Thompson stated that the initiative was the organization’s top priority.
Mobile phone manufacturers are also thrilled at the idea of getting in on point of sale transactions since it would be assumed they get a cut as well, with the technology already in place in many other countries across the world.
PayPal does offer consumers a Mastercard debit card to access their funds while shopping in real life stores, but down the road they hope to cut out the middleman and simply offer their own POS sales increasing their personal profit.
In October the financial giant is expected to release more details at its annual conference. The moment PayPal has over 220 million users and annual revenues that average up to about three billion US dollars.