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PayPal Holdings Inc. is adding tap to pay on mobile phones to its U.S. Venmo users with business profiles. The Tap to Pay on Android technology enables merchants that accept Venmo payments to do so using conventional Android smart phones without having to attach a special payment dongle. The service also will be available to U.S. PayPal Zettle users. Both initiatives are being rolled out to select merchants now with broader availability coming.
In 2021, PayPal launched Zettle, which had been a Europe-based mobile point-of-sale service, in the United States.
Additionally, PayPal is making Tap to Pay on iPhone available to a group of Venmo business profile users and PayPal Zettle users, with broader expansion later on. PayPal acquired Sweden-based Zettle in 2018 for $2.2 billion.
“Venmo business profile users will also be able to manage both their Venmo and card payment transactions directly within the Venmo app, and have all their funds settle into their Venmo account, helping to streamline operations and manage cash flow,” PayPal says in a statement.
In addition to eschewing specialized hardware, tap to pay on smart phones only requires a payment app. PayPal is the latest processor to add the service, joining rivals Adyen NV, Square from Block Inc., and NewStore Inc.
Adding tap-to-pay on smart phones is expected to make it easier for consumers, many of whom are carrying less cash now, to pay and easier for merchants to accept contactless payments using a commercially available, off-the-shelf mobile phone. Only 18% of payments were made with cash in 2022.
