- A Mastercard survey published in April found that 79% of respondents said they now use contactless payment options, noting safety and cleanliness as key factors.
- CVS Pharmacy and PayPal Holdings said the goal of the touch-free payment option set to launch in 8,200 stores by the fourth quarter is to help people “stay safe” while buying essentials during the pandemic.
- When someone gets to checkout they can open their PayPal or Venmo app and scan the QR code, which is a type of barcode, to pay using a stored debit, credit card or bank account or their PayPal or Venmo balance without paying a fee.
- PayPal Holdings and payment technology company InComm inked a multi-year agreement to bring PayPal and Venmo QR code technology to retailers, with CVS being the first to sign on.
- InComm will distribute the QR code technology through its cloud-based software updates, which allows retailers to “quickly and easily” integrate the touch-free payment technology into their checkout process.
- This isn’t the first time that PayPal Holdings has partnered with retail stores, but it marks the start of the contactless payment option.
PayPal Holdings, which owns PayPal and Venmo, announced Thursday that CVS Pharmacy will be the first national retailer to integrate PayPal and Venmo QR code technology at checkout, as the coronavirus pandemic has caused an increased interest in touch-free payment.
CRUCIAL QUOTE
“In the midst of the Covid-19 pandemic, digital payments have become more important and essential than ever. Our record performance in the second quarter — our strongest quarter ever — reaffirms the relevance of PayPal in the unfolding digital future,” President and CEO Dan Schulman said in the quarterly report filed Wednesday.
KEY BACKGROUND
In the second quarter of 2020, cash flow from operations was $2.4 percent, up 103% year-over-year, and the company brought in $5.26 billion in revenue, up 25% year-over-year. On Wednesday, stock prices increased from $178.45 at opening to $184.6 at close. By Thursday the closing price was $192.51 and the market cap was $206.94 billion, up from $112.3 billion at the end of March. The stock price has increased by 66.61% in the last 52 weeks.
BIG NUMBER
346 million. PayPal Holdings says it has that many accounts across its subsidiaries after adding 21.3 million during the second quarter.
TANGENT
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
In 2012, PayPal Holdings launched partnerships with at least 16 major retailers including Home Depot, Barnes & Noble and JC Penney. However, customers had to enter a PIN code or swipe a PayPal credit card at checkout so it wasn’t touch-free. Even with this new InComm partnership, PayPal Holdings faces competition from payment apps by Apple, Google and others and contactless credit cards issued by major banks.
Source: Forbes