PayPal has been a staple in the online payment marketplace since the early days of ecommerce. The company is now looking toward the future and is seeing the lucrative opportunities yielded by peer-to-peer payments. The company already has several mobile peer-to-peer payment apps like the popular Venmo and their own PayPal.me, but is looking for more ways to cater to the peer-to-peer market. In a Q&A, the director of global initiatives at PayPal, Anuj Nayar, discusses the company’s goals for the future.
First, to put the world of peer-to-peer payment into perspective, these types of transactions account for well over $1 trillion. That’s a huge market, and PayPal wants a bigger share. Their Venmo payment app recorded over $1.6 billion in transactions for Q2 2015 alone, but there are still more ways to get people paying using their smartphones. PayPal.me is a way for anyone, regardless of owning an app, to pay a friend or family member over the Internet. PayPal is hoping this simplified, zero-barrier-to-entry system will help allow more people than ever to start paying each other digitally.
So what does Nayar think is the biggest hurdle for ecommerce and mobile purchasing to overcome? Simplicity. Most mobile shoppers do not enjoy using a mobile web browser for completing a checkout process. It’s a slow, clunky process with lots of room for errors. This is why creating a streamlined, simplified app is essential for boosting mobile commerce sales. PayPal is specifically targeting simplicity by focusing on their OneTouch payment system, which will allow users to complete the checkout process with the touch of a button. PayPal logged 4 billion transactions with their service last year, and one-in-four were via mobile devices. At the current rate of adoption, the number of mobile payments is set to explode.
The key takeaway is that people are growing increasingly confident in shopping on mobile devices and paying their friends and family with mobile. Incorporating easy payment systems within an app is the easiest way to bring convenience to consumers.
Read the full article here: Q&A: Why peer-to-peer payment is PayPal’s lucrative next frontier