PayPal Adds Seven New Retailers For In-Store Payment Technology, Tests Order-Ahead Pickup

PayPal announced today that seven new national retailers are using the company’s in-store payment technology.  In March of 2012, PayPal had 16 retailers on board with the service, and planned to have a total of 20 by the end of the year. The company now has a total of 23 retailers signed up to use the company’s payment portal. Additionly, PayPal’s in-store payments technology is being used in 18,000 stores nationwide.

Customers can use either a PIN code or a special PayPal credit card that you can swipe to take the payment from your PayPal account. Retailers are coming on board with this because it doesn’t require a big investment in new technology, like replacing POS systems or installing an NFC-based solution. Thing is, it sounds like PayPal is reeling from Square’s success these days. If you missed it, last November Square and Starbucks teamed up to bring customers payment options using Square. Starbucks now also sells the Square dongle in select stores. People are getting sick of PayPal’s onerous terms and moving to new solutions.

Anywho, retailers now using PayPal’s in-store technology include Famous Footwear, Dollar General, Mapco Express, RadioShack, Spartan Stores. Others already using the service include Abercrombie & Fitch, Advance Auto Parts, Aeropostale, American Eagle Outfitters, Barnes & Noble, Foot Locker, Guitar Center, Home Depot, Jamba Juice, JC Penney, Jos. A Bank Clothiers, Nine West, Office Depot, Rooms To Go, Tiger Direct, and Toys “R” Us.

PayPal’s in-store offerings have also expanded to grocery and gas stations, according to PayPal’s Don Kingsborough.

PayPal is also testing a new ordering feature for Jamba Juice that lets users pre-pay through PayPal and order smoothies or food for pickup. After choosing your order, users can also choose a pick-up time in store and pay with PayPal right from a mobile device. This service allows you to skip the line and cashier and get your order right away. PayPal is also testing a similar service with McDonald’s in 30 stores in France.

These kinds of payment systems are the future, and a pretty obvious indicator that NFC may not be all that important to roll out into new iPhones. Given the state of Google Wallet, and Apple’s Passbook, as well other services like Square and Paypal, there really isn’t a need to revamp retail outlets with new POS systems that support NFC.

Image Credit: Weakonomics

Kaylie lives in Ottawa and got her first Mac in 2007 and is now a fan for life.