On May 24, VeriFone Systems and PayPal announced a comprehensive licensing, marketing and implementation agreement that facilitates PayPal acceptance at large retail brick-and-mortar stores. This partnership provides PayPal access to “more than one million high volume points of sale” to offer retailers the opportunity to converge e-Commerce and retail payments into a compelling shopping experience for consumers, according to VeriFone in a press release.
Some of the VeriFone retail customers implementing PayPal consist of 10 Tier 1 companies including: Abercrombie & Fitch, American Eagle Outfitters, Foot Locker, Joseph A. Bank and Toys “R” Us. In total, the VeriFone customer base consists of 80% of the top 200 retailers, and more than one million check-out lanes, the company reported to Retail TouchPoints.
“VeriFone’s extensive customer base and strong technology make it a natural ally for PayPal as we continue to deliver on our strategy to bring intelligent electronic payments and value-added offers to brick-and-mortar stores,” said Don Kingsborough, Retail and Pre-Paid Services VP for PayPal.
The VeriFone solution offers consumers the capability to use the existing PayPal payment method at point-of-sale (POS). Shoppers can use the PayPal Access card and PIN or enter a phone number and PIN. This service also will be compatible with newer options, such as NFC, when available.
“Retailers who take advantage of the extensions to VeriFone’s platforms will be able to offer their customers a rich environment that integrates the virtual and physical retail worlds,” added Jennifer Miles, EVP, VeriFone North America EVP. “By working to extend PayPal’s reach into traditional retail, VeriFone is providing retailers with an immediate and simple way to adopt and manage new payment experiences that consumers are demanding.”
Additional PayPal Partnership Announcements
In addition to VeriFone, PayPal is now working with Ingenico and Equinox, giving the company access to a total of approximately 40 million POS terminals, according to David Marcus, President, PayPal, in a company blog.
Prior to these announcements, PayPal had partnered with Home Depot to trial the payment services. Following a five-store test, the home improvement retailer rolled out the solution to its entire 2,000-store network.
PayPal also named 15 other retailers expected to implement its services, including: Abercrombie & Fitch, Advance Auto Parts, Aéropostale, American Eagle Outfitters, Barnes & Noble, Foot Locker, Guitar Center, Jamba Juice, JC Penney, Jos. A. Bank Clothiers, Nine West, Office Depot, Rooms To Go, Tiger Direct and Toys “R” Us.
Marcus also noted that PayPal is working with other partners to provide the ability for mid-market retailers to implement PayPal services. PayPal currently is working with the following point of sale software providers Leapset, ShopKeep, Vend and Erply.