Magazine article American Banker

PayPal, Eyeing POS, Starts Work on Reseller Program

Magazine article American Banker

PayPal, Eyeing POS, Starts Work on Reseller Program

Article excerpt

Byline: Kevin Woodward

PayPal Inc. is developing a reseller program to help it move into point of sale payments.

The program is still in its early stages, so the eBay Inc. unit had few details to share, but the program would build upon PayPal's partnership with the terminal maker VeriFone Systems Inc.

"We will work proactively with independent sales organizations to ensure the [mobile] business model works," said Laura Chambers, PayPal's senior director of mobile.

PayPal is a force in e-commerce transactions. In 2009, PayPal, which like VeriFone is based in San Jose, Calif., handled $72 billion in payment volume, a 20% increase from the previous year. PayPal's merchant-services segment processed $39.5 billion in payments last year, an increase of 33.9%.

VeriFone plans to add PayPal acceptance to its hardware after Jan. 1. Under an agreement between PayPal and VeriFone, merchants using PayWare Mobile, a card-acceptance device that fits over Apple Inc.'s iPhone, would be able to accept PayPal funds by bumping their phones with PayPal users' iPhones.

The agreement also calls for VeriFone to use its PayWare Mobile card-encryption sleeve to expand PayPal payment acceptance via mobile phones and to integrate PayPal with online and point of sale environments.

In addition, the terminal maker would promote PayPal and the bump funds-transfer function to its reseller channel, and PayPal would market PayWare Mobile to its user base.

"Merchants tell us they want us in more of these transactions," Chambers said. …

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