Venmo Enables Tap to Pay Feature on Android Devices
PayPal is introducing a new feature that allows local stores to accept payments using only a smartphone. This tap to pay feature will be available for Venmo and Zettle businesses in the US, enabling them to accept various contactless services and cards, including digital wallets, without the need for a card reader. This means customers can make payments without having to use their physical wallets. According to PayPal, the setup process for this feature is quick and can be completed within minutes.
Initial setup is free. PayPal says it will roll out to all Venmo businesses in the country “over the coming months,” but prospective customers can pre-register now. The approach is already available to all PayPal Zettle users in the US. The company adds that tap-to-pay on iPhone is now available to some US users and should reach them all “soon.”
PayPal’s incentive is clear. TechCrunch notes that Venmo and Zettle take 2.29 percent plus nine cents on each transaction. If a store relies on either brand’s faucet to pay for a large portion of its sales, that’s a profit, even if the customers themselves never use those services. You can already use Venmo as a customer at big stores like Starbucks — theoretically giving PayPal a bigger stake in the entire retail process.
As with Square, tap-to-pay on Apple’s iPhone, and similar offerings, PayPal’s approach could make contactless payments easier. It lowers the cost of entry and allows small businesses to take the payment method they want anywhere, like outdoors or at a convention. This in turn could reduce the need for cash and traditional credit or debit cards. It’s just a question of whether the technology and its costs will gain enough traction among retailers.
