In the last week of November 2013, PayPal launched a new payments service in Germany in collaboration with Orderbird, a Berlin based startup. PayPal says that its new service called ‘CheckIn’, creates a personalized shopping experience for the user.
Orderbird was founded in March 2011 with Jakob Schreyer (Co-founder & CEO). The management team includes Patrick Brienen (CMO), Bernhard Bockelbrink (CTO) and Bastian Schmidtke (CPO). Orderbird has received a total funding of $4.4 Mn through investors ALSTIN, Lars Kamp, Carlo Kolzer and Tom Kohl.
PayPal tied-up with Orderbird in order to reach merchants who were reluctant earlier to use the services offered by them.
- For using the services customers need to build a profile like the same way they would on traditional social networking website.
The profile is activated when person enters into a store using the Paypal CheckIn service.
PayPal geo-location is very similar to other social networking websites like Foursquare and Facebook.
Using the profile will help customer get associated with the service which allows customers to shop for products that they might be interested in based on their shopping history.
Orderbird offers a complete POS solution for bars, restaurants and clubs. The cash register system can be used according to the requirements of individuals. It will send the waiter’s order directly to the kitchen and bar through wireless technology. PayPal’s partnership with orderbird will help both the parties to strengthen their business offerings.
Orderbird initially plans are to test the service among a small number of businesses which covers cafes, small retail outlets in Germany. Some 1,700 merchants from Germany, Australia and Switzerland are using Orderbird services currently. The company is also planning to offer users “menu cards” for participating in eateries and cafes so that they can preorder what they want through their handsets.
PayPal working on retail check-ins suggest that the eBay-owned payments company wants to bring the same kind of purchase flow into its Beacon product. Its hardware works with Bluetooth low energy technology to push alerts to customers when they walk to the nearest participating store, restaurant or other space where they might be interested to make a purchase.
Currently Orderbird has integrated the PayPal checkIn to their POS system which means that merchants using Orderbird will also be using the PayPal authentication and payment services without buying anything from Beacon technology.
One of the biggest challenges that lie in front of companies like PayPal, iZettle is to transform the thousands of merchants using legacy systems switch to no card system way of accepting cards. “The benefit to switch needs to be big enough for retailers, and also interesting enough to get consumers to use it,” says Jakob Schreyer, CEO of Orderbird.