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PayPal Pushing for Dominance

New venture could see payment service accepted at brick-and-mortar stores.

PayPal is aggressively expanding into new markets with three separate projects—including one that would take the online payment service into brick-and-mortar shops.

PayPal President Scott Thompson recently revealed a new technology is in the works that would sync up users’ PayPal accounts with their mobile devices. This would create “digital wallets” that would allow users to use PayPal to purchase goods at local shops and online sites. The development would essentially put PayPal in direct competition with credit card companies, and could give it access to a good chuck of revenue since an estimated 90 percent of shopping is done in malls and other physical shops.

While Thompson gave few details of the venture, he did say it’s a “top priority,” and that more information will be released during the company’s October conference.

PayPal, which boast about 220 million users, is also in talks with Google to introduce an e-mail-based payment system for Android users. This would give Android users an alternative to Google Checkout when they buy apps, an option developers have been asking for for some time, experts say.

Finally, PayPal recently announced it will break into the Japanese market without eBay, which pulled out of the Asian country in 2002 after tough competition from Yahoo Japan. Japan, which has the second largest number of online buyers, could prove very lucrative if PayPal succeeds, experts say.

“We’re very, very new. We have a very small share of the market, so we still see great opportunities in Japan,” says Andrew Pipolo, head of PayPal’s Japan operations.

With ventures like these, parent company eBay Inc. expects the PayPal business unit to grow larger than the core eBay marketplace within the next few years.

About the author

Olga Munoz
Olga Munoz is editor of In addition to writing news and feature articles about e-commerce, selling trends, online marketing and other topics of interest to online sellers, Olga manages the site's social media efforts. A journalism graduate of Chico State, Olga says her favorite part of being a journalist is learning interesting facts that help put stories into perspective, attending industry events and meeting interesting people "that leave you smiling, even in tough situations." Opinions expressed here may not be shared by The Online Seller and/or its principals.

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