“PayPal Launches Tap to Pay for Venmo and Zettle on Android, Empowering US Merchants”
In an exciting announcement, PayPal has introduced a tap-to-pay feature for merchants in the United States, leveraging the power of Android phones through the Venmo and Zettle apps. This move builds upon PayPal’s ownership of both Venmo and Zettle, enabling seamless payment acceptance for businesses.
Previously, PayPal launched a similar functionality in the UK, allowing businesses to accept tap-to-pay payments via cards or digital wallets. Now, US-based merchants can enjoy the convenience of Tap to Pay on Android, utilizing the Zettle app as their mobile point of sale management solution. While the rollout for Venmo business profiles will be phased over the coming months, select businesses are already benefitting from this feature, with early access requests being accepted.
This game-changing capability enables sellers to accept payments from various digital wallets, including Apple Pay and Google Pay, without requiring any additional hardware. PayPal charges a fee of 2.29% + 9¢ for each transaction made through the tap-to-pay method on Zettle and Venmo.
According to Ed Hallett, Head of Product and Microbusiness at PayPal, “Tap to Pay is the last milestone in the democratization of in-person card payments, where users can start taking card payments with no setup cost in a matter of minutes. We’re unlocking access to this capability for the millions of businesses using Venmo and PayPal Zettle, helping them drive sales with frictionless payment options.”
Furthermore, PayPal is extending its support for tap-to-pay functionality on iPhones to Venmo for Business and Zettle customers in the US. This move comes after the feature’s initial announcement in November.
While iOS remains the dominant mobile operating system in the US, PayPal aims to leverage Venmo’s vast user base of 90 million individuals (not businesses) and provide them with an effortless payment acceptance experience, eliminating complex setup procedures. Venmo currently utilizes Zettle’s technology for tap-to-pay on Android, highlighting the synergies between Venmo for Business and Zettle.
This expansion of tap-to-pay products by PayPal follows in the footsteps of competitor Stripe, which introduced a similar feature on Android phones in six countries. Stripe charges $0.10 per transaction for tap-to-pay using its payment gateway, along with additional fees for card and digital wallet payments.
Amidst these advancements, PayPal recently experienced changes in its leadership, with CEO Dan Shulman stepping down and CFO Blake Jorgensen leaving for health reasons. Currently, the company’s stock is at its lowest point in the past five years, adding an interesting dimension to these new developments.