PayPal at the POS — Now For the Hard Part

by Mercator Advisory Group 0

PayPal is stirring the pot with its string of merchant acceptance announcements, but as anyone in the industry will tell you, consumer adoption is where the rubber hits the road. In the near term, offering discounts on gas or other deals will drive some use, but PayPal has to establish themselves as a brand at the point of sale, which is a much more difficult thing to do when card acceptance is so convenient and ubiquitous. In addition, consumers tend to have entrenched behavior when it comes to paying for purchases — meaning that they generally preselect a payment form prior to making a purchase. Recent experiences at Home Depot indicate that activity is low, if at all, but there’s also been no promotions. We would expect to see some serious marketing capital put on adoption, and soon. From

For now, it’s all about PayPal getting more exposure at the point of sale, but eventually the company has to educate consumers about how to use a PayPal card and why it believes PayPal offers a better system, analysts contend.

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