Mobile payments service to stem from PayPal and Magento deal

April 15th, 2013 | Add a Comment

The new service will allow consumers to be able to pay using the app while inside stores.

Magento has belonged to eBay since 2011, providing it with an e-commerce platform that merchants were able to use for the creation of customized online shops, but this has been kept separate from PayPal, another acquisition, until the latest mobile payments service was developed.

This program will bring eBay’s PayPal and Magento together, changing the current environment.

eBay has just announced its most recent partnership which will bring Magento’s service together with the mobile payments and m-commerce technology of PayPal. The CTO of PayPal, James Barrese released this announcement in a blog post. The company is using this partnership to create two new extensions for the 150,000 merchants with Magento.

These two mobile payments services will expand the way that consumers can pay for purchases.

The first of the two mobile payments services will be labeled In-Aisle Selling. It draws together the PayPal Here point of sale service directly with the merchant’s store. It allows a salesperson on the floor to be able to complete a purchase transaction from debit or credit cards at any place within the store. This applies the use of the dongle, a triangle shaped magnetic reader, with a mobile device.

It will be combined with the ordering and inventory system from Magento, which will be available to those same reps. This way, those individuals working in the store aisles will be able to access inventory systems and process mobile payments while completing the transactions with the unique details of the customer.

The second extension is being called the Order Ahead program. This allows merchants to use the PayPal app to create a digital store. This is following a successful pilot project that was run through Jamba Juice.

According to Barrese, the pilot was highly successful and they are therefore using it to expand the program as the Order Ahead. It will begin with the merchants who are already with Magento and will spread from there. Stores will be able to use templates specialized for the mobile payments program in order to create catalogs and menus and then synchronize their locations and operating hours with the ordering system at PayPal.