Google and PayPal have inked a new agreement where Paypal accounts can be used as a checkout option on Android Pay. The feature will be available to users in the US only. Note that the integration with Android Pay is supported on versions of Android OS 4.4 and higher, including KitKat, Lollipop, Marshmallow and Nougat.
“Initially, users will be able to pay using their PayPal balance and over the coming months, we will add the ability to use cards that have been stored with PayPal, enabled by our recent tokenization partnerships with major card networks,” the company added. The deal will help increase reach in stores across the US “from Walgreens and Dunkin Donuts”, the company said.
The company has been cutting deals with various financial institutions. Recently it partnered with Citi, Fidelity National Information Services (FIS), Visa, MasterCard, Alibaba, Discover, and Facebook.
Note that in the MasterCard and Visa deal, it has been trying to increase the acceptance of PayPal’s wallet. The wallet will be accepted in all physical retail locations where MasterCard and Visa contactless transactions are enabled. The agreement also gave economic incentives from the card networks which removed the threat of further fees or network rules targeted solely at the company.
Last year, it became a payment option on Alibaba’s global retail marketplace, AliExpress. It is also a payment option on Facebook’s Messenger application for customers in the US. This means that people who shop via chatbots on online merchants will be complete the purchase through PayPal.
PayPal in India
Meanwhile in India, launched PayPal.me, a digital peer-to-peer payment service aimed at freelancers and small businesses selling products and services across borders. Merchants could set their own profiles and get a personalized URL for their business with their existing accounts. The URL would help merchants to call for a payment without giving out their bank account details and IFSC or SWIFT code. The company cut its foreign exchange rates by 40% by one percentage points. It has a mark-up on foreign exchange transactions which varies from 2-4%.