During SXSW Interactive 2012, PayPal VP, Global Product & Experience, Sam Shrauger introduced PayPal’s latest product PayPal Digital Wallet. They are focused on the future of money and redefining the consumer experience. With Square processing credit card payments for one out of every eight merchants, PayPal’s announcement is very timely. PayPal Wallet is digital not mobile so it’s clear that their strategy is focused on reaching beyond accepting payments via mobile devices.
PAYPAL DIGITAL WALLET FEATURES:
Separating the purchase from the payment: This is truly a unique feature that is different than other mobile payment processing tools. PayPal will allow three new aspects in separating the purchase from the payment: (1) Switch funding sources (change from credit card to a debit card for example); (2) Pay in installments and (3) Apply different payment sources (gift cards, airline miles, etc.). PayPal will offer a 5-7 day grace period that will allow customers to change how they pay for their purchases.
Personal Lists: Search. Compare. Create. The personal list will allow you to compare prices and curate list of items that you want to purchase.
Found Money: One of the integrated features is to allow the system to identify coupons and deals for items on your list.
Spending Rules: PayPal will help you manage your money by allowing users to establish specific spending rules, including purchase amounts and payment instruments.
These features will begin to roll out in May 2012.
PayPal will also be launching a competitive product to Square that will allow users to process credit card payments on their mobile devices with their own card reader. The processing fee will be slightly lower than Square, which is 2.75%; PayPal’s fee will be 2.70%. Currently, PayPal has over 100 million users so they are well positioned to change the future of money, but time will tell if ‘Digital Wallet’ is the future of money.
Below watch live demos of PayPal Digital Wallet with VP, Global Product & Experience Sam Shrauger
PayPal Digital Wallet Demo – Part 1
PayPal Digital Wallet Demo – Part 2