In the race to win online and mobile payments business, the current leader, PayPal, has gotten more aggressive. The company has created a way for developers using its Adaptive Payments API to build web and mobile payment applications that accept credit card payments without requiring customers to open a PayPal account. The service, called Guest Payments, is intended to make it easier for small businesses to offer online payments to their customers. It could also help PayPal win over consumers who dislike the idea of opening another payment account and/or are concerned about PayPal's security, but are comfortable using their credit card numbers online.
PayPal is also rolling out new pricing — a flat fee of 50 cents for services transactions funded by a bank account or PayPal account balance, with a three-day settlement period; or a 0.75 percent fee for services transactions funded by a bank account or PayPal account balance, with instant settlement. This pricing will be available to partners and developers starting in Q4.