In an effort to streamline payment processes for local businesses, PayPal is introducing a new feature that allows them to accept tap-to-pay transactions using smartphones. This functionality will be available for both Venmo and Zettle businesses in the United States, giving shops the ability to accept contactless payments from digital wallets, including Apple Pay and Google Pay, without the need for a separate card reader.
Setting up the tap-to-pay feature is quick and easy, according to PayPal, with initial setup being free of charge. While the rollout for all Venmo businesses is scheduled to take place over the next few months, interested merchants can sign up for early access. The service is already available to all PayPal Zettle users in the US. Additionally, PayPal has announced that Tap to Pay on iPhone is now accessible to certain American users, with availability expected to expand to all users in the near future.
For PayPal, the motivation behind this move is apparent. Venmo and Zettle charge businesses a transaction fee of 2.29 percent plus nine cents for each transaction. By encouraging more businesses to adopt tap-to-pay technology, PayPal stands to benefit financially, even if customers don’t directly use their services. Furthermore, PayPal’s involvement in the entire retail process is increased, as major stores like Starbucks already accept Venmo as a payment method.
Similar to Square and Apple’s Tap to Pay on iPhone, PayPal’s introduction of this feature aims to make contactless payments more accessible to businesses. By eliminating the need for additional hardware, the entry barrier and costs associated with adopting tap-to-pay systems are lowered. This empowers small businesses to accept their customers’ preferred payment methods, whether they are operating outdoors or at events like conventions. Consequently, this may reduce reliance on cash and traditional credit or debit cards. However, the widespread adoption and success of this technology among retailers remains to be seen.
