EBay, VeriFone to Bring PayPal to Store Cash Registers
VeriFone Systems Inc. (PAY), the largest maker of credit-card terminals, said shoppers will be able to use their PayPal accounts at cash registers in some brick-and- mortar stores this holiday season.
EBay Inc. (EBAY), owner of the PayPal online-payments business, and VeriFone have signed a licensing and marketing deal to add the payment option at U.S. retailers, Jennifer Miles, an executive vice president at VeriFone, said in an interview. She didn’t name the retailers.
The entry will advance EBay’s efforts to enter the market for physical retail transactions, which dwarf online commerce. E-commerce accounted for 7 percent, or $200 billion, of total U.S. retail sales last year, according to Forrester Research.
The two companies have collaborated on an application that can be used remotely to upgrade VeriFone cash registers already installed in stores. About 80 percent of the top 200 U.S. retailers use VeriFone card terminals, Miles said.
“We are making it very easy for merchants to implement this,” Miles said. “It opens up PayPal to offer account holders a variety of ways to pay.” The PayPal feature will initially be implemented on VeriFone’s MX Solutions products, using either a PayPal card or a telephone number and pass code combination.
Equinox Payments LLC, a maker of payment terminals and software, will announce a similar agreement with PayPal, Anuj Nayar, a spokesman for PayPal, said in an interview.
PayPal and VeriFone competitor Ingenico (ING) agreed in January to incorporate PayPal into the French company’s card-reading terminals. PayPal also announced a relationship with AJB Software Design Inc. to develop software to ease merchants’ processing of PayPal transactions.
Also today, PayPal announced point-of-sale payment partnerships with 15 retailers, including J.C. Penney Co., Jamba Inc., Foot Locker Inc. and Abercrombie & Fitch Co.
EBay was little changed at $39.67 at the close in New York, while shares of VeriFone decreased 3.6 percent to $45.
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