Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Tech
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
PayPal Beacon May Revolutionize the Way We Pay

PayPal Beacon May Revolutionize the Way We Pay
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

With Beacon, PayPal is doing one thing really well -- making it very easy to fulfill a payment through the PayPal back-end infrastructure. œPayPal could become the back-end infrastructure for payments the way Amazon has for logistics, said Gerry Purdy, chief mobile strategist at Compass Intelligence.
 


On the heels of its made over mobile app launch last week, PayPal is making an even stronger push to find a place in the bricks-and-mortar world. It'™s called Beacon -- and the company hopes it will revolutionize the way we pay for goods and services by taking the credit card "œswipe" out of the equation.

Beacon is a new add-on technology for merchants that makes it possible for consumers to pay at their favorite stores completely hands-free. Consumers will have full control of stores they will want to check in to (a la Foursquare), those where they will want to get prompted for payment confirmation, and those stores where they will want to enable complete hands-free experiences.

Here's how it works: If you enable hands-free payments, walking into a store will trigger a vibration or sound to confirm a successful check in, your photo will then appear on the screen of the point-of-sale system so you can be greeted by name. Paying only requires a verbal confirmation. No credit card swiping or even touching your phone.

What About Privacy?

"We challenged ourselves to find a better experience than swiping a credit card. And that's hard. No one wakes up in the morning and thinks, 'I wish someone invented something better than swiping a card to pay. I hate it,'" said David Marcus, president of PayPal, explaining how the company came up with the idea for Beacon.

"œWe figured the only better way to pay would be to do nothing. Just walk in a store, and, like magic, when you'™re ready to pay, money is transferred securely. We played with geo-location leveraging GPS and WiFi. We played with geo-fences in iOS. But, none of these solutions met our standards," he said.

Any store running point-of-sale systems compatible with PayPal, including Booker, Erply, Leaf, Leapset, Micros, NCR, PayPal Here, Revel, ShopKeep, TouchBistro and Vend, will plug a PayPal Beacon device into a power outlet in its store. Once the Beacon is plugged in, Marcus explained, the store will be ready to host a personal shopping experience.

Marcus worked to head off any privacy concerns by noting that Beacon won'™t constantly track your location like other technologies. If you enter a store and decline to check in, or just ignore the prompt entirely, he said, no information is transmitted to PayPal or the merchant.

Amazon-Like Infrastructure

We asked Gerry Purdy, chief mobile strategist at Compass Intelligence, about PayPal's latest innovation. He told us this is the next step for the payments processor, which started out as a way to guarantee eBay users would receive the goods they purchased and has evolved over time.

For example, PayPal has waxed aggressive over the past year with web developers, making it as simple as possible to integrate Pay by PayPal into sites. PayPal also charges lower credit card processing fees than traditional gateway providers, which has helped it proliferate in the online payments world.

"œPayPal could become the back-end infrastructure for payments the way Amazon has for logistics. The other side is that this is cool but you also have to be practical. Some people will walk in the store and they don't have the PayPal app. So they have to take time to download it if they want to engage," Purdy said.

œ"Of course, if someone walks in and doesn'™t have a smartphone or doesn't want to use the PayPal app he can still buy the traditional way. PayPal is doing one thing really well -- making it very easy to fulfill a payment through the PayPal back-end infrastructure and this is another example of that," he said.
 

Tell Us What You Think
Comment:

Name:

Oliver Beaty:

Posted: 2013-09-11 @ 11:32am PT
Quite fascinating. BUT, I rarely have bluetooth on. Who has BT on all the time? And then there's all the bad rap about PayPal. Personally, I've never had any issues with them..except for the fact that they took so long to get PayPal Here here in the UK. Good thing there are other mobile payment providers just as awesome such as mPowa here when I needed a card reader.

Philip Cohen:

Posted: 2013-09-11 @ 10:09am PT
Wot? Another load of nonsense from the eBay Dept of Spin ...
How about some reality ...
eBay's crooked marketplace ...
The clunky "PreyPal" ...
And the ongoing joke of it all ...



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Mobile Tech
1.   Apple Stock Soars Ahead of iPhone 6
2.   HTC One M8 Windows Phone Unveiled
3.   Verizon Tops in Mobile Networks
4.   Sprint Out with Data Guns Blazing
5.   Best Buy Leaks Moto 360 Watch Info


advertisement
HTC One M8 Windows Phone Unveiled
Can be POS device for small business.
Average Rating:
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 
Chinese Hackers Nab Info on Millions of U.S. Patients
A group of Chinese hackers has stolen the personal information, including names and Social Security numbers, of about 4.5 million patients at hospitals operated by Community Health Systems.
 

Enterprise Hardware Spotlight
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 
Compression, Deduplication Come to Violin Concerto 2200
Violin Memory has announced that data deduplication and compression capabilities are now available on its Concerto 2200 solution. Typically, users will experience deduplication rates between 6:1 and 10:1.
 

Mobile Technology Spotlight
Apple Stock Soars Ahead of iPhone 6 Launch
The imminent release of the iPhone 6 -- and maybe even an iWatch -- has sent Apple's stock soaring to new heights. Considering what else the firm could have up its sleeve -- the stratosphere may be the limit.
 
HTC Debuts Windows Phone Version of One M8 Smartphone
HTC is bringing the Windows Phone mobile OS to its flagship One M8 device -- the first time any mainstream flagship smartphone has been offered with a choice of operating systems.
 
Verizon Earns Top Rating in Mobile Network Comparison
A new report says Verizon Wireless was the top-performing U.S. cellphone service provider in the first half of 2014, on a nationwide and state-by-state basis, as well as in metro areas.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.