PayPal Cashing In On Mobile Commerce with Express Checkout


PayPal (s ebay) today launched Mobile Express Checkout, a mobile extension of the company’s Express Checkout that offers online retailers a streamlined payment process. Early adopters of the new service include Nike and, with a wider variety of retailers to follow, the company says. With the new service, vendors can offer a seamless checkout experience when customers shop on an iPhone (s aapl) or Android (s goog) device, which will help continue to drive the growing mobile payment business — a market expected to top $633 billion by 2014.

With the new offering, PayPal is clearly going after a piece of that growing payment pie, and the company wisely expects that shopping on the go isn’t a passing fad. PayPal need only look at its own data to justify this assumption: mobile PayPal transactions have increased to $141 million in 2009 from $25 million the prior year. In a blog post today, Bill Zielke, senior director for PayPal’s merchant services team, says the company expects to see $500 million in mobile transactions this year. Zielke’s projection may sound high on the surface, but I wouldn’t be surprised if PayPal blows past that half-a-billion dollar mark in mobile transactions this year, especially if it can quickly get retailers on board.

It shouldn’t be too difficult for PayPal to attract big brands to the new service: retailers know that consumers are doing more on the go every day — every hit, link or mention of a e-tailer’s site is a potential sales opportunity. And every one of those opportunities can quickly be lost with a complicated or frustrating mobile payment process. By streamlining that process and customizing it for the small screen — popular ones no less, with iPhone and Android support — combined with a recognized brand in commerce, PayPal’s Mobile Express Checkout could eliminate the “Costanza Wallet.”

Related content from GigaOM Pro (sub req’d):

A Mobile Payments Glossary


Philip Cohen

Draft Media Release

“It is with very great sadness that eBay’s Chief Headless Turkey, John Donahoe (aka “Peter Principle”—among many other derogatory terms), announces the probable demise of eBay’s most ugly daughter, PayPal. PayPal is about to be stricken by particularly virulent strains of Visa+CyberSource and Mastercard Open Platform, aggravated by an insurmountable lack of direct financial institutions participation and a great deal of PayPal user/merchant dissatisfaction, particularly with respect to PayPal’s grossly unfair, “all responsibility avoiding” UA, primitive risk management processes, and totally unprofessional, buyer-biased, fraud-facilitating, transactions mediation.

“PayPal’s health may therefore be expected to deteriorate and, if ultimately not completely incapacitated, will most likely be eventually confined to its mandatory offering on what little there will be by then left of the Donahoe-devastated eBay marketplaces. There is no cure for this condition, and the “eBafia Don” is particularly saddened by the inevitable presumption that it is unlikely that PayPal will be able to continue to underpin eBay’s sagging bottom line in the future.”

Also, unlike all other payments processors operating in Australia, PayPal has declined to sign up to the payments processors’ “Code of Conduct”. The clear message therefrom is “users beware”!

The fact is, had the original developers of the “bankcard” concept ever behaved the way PayPal behaves, credit/debit cards would never have gotten off the ground, and we would still be paying for all our purchases with pieces of paper and little metal discs.

A detailed examination of and prognosis for PayPal (including a further link to the “PayPal Horror Tour”) at

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