October 26, 2010

PayPal and POS terminal manufacturer VeriFone are working together to increase PayPal mobile payment acceptance.

The two companies are integrating PayPal payments with VeriFone's PAYware Mobile card encryption sleeve for the iPhone, which lets merchants accept credit card payments on an iPhone. PayPal's merchant acceptance application will be enhanced to support traditional card-based payments using VeriFone's PAYware Mobile card encryption. The PAYware Mobile App will be enhanced to support PayPal Bump technology that enables iPhone users to bump their phones together to transfer money between them. VeriFone will also enhance its payment gateway to integrate transaction reports for merchants who accept PayPal and traditional card payments.

The companies will help each other on the marketing front, too. VeriFone will, upon integration, promote PayPal and Bump acceptance to its vast channel, and PayPal will market VeriFone's PAYware Mobile to its user base.

"Rapid adoption of mobile payments makes it possible to further align PayPal payments with traditional card-based transactions at the physical point of sale," said Jeff Dumbrell, VeriFone executive vice president, in a statement.

"VeriFone is a proven leader in payments point of sale and we're excited to have them in the PayPal ecosystem," said Osama Bedier, PayPal's vice president of platform, mobile and new ventures. "Online and offline are quickly converging and, with this new business relationship, both merchants and consumers will benefit, upon integration, from the ability to use the mobile wallet anytime, anywhere."

The integrated capabilities are expected to be available next year.