PayPal Offers a New Omnichannel Payment Experience at Macy's

With rising consumer expectations around shopping and commerce, enabling multiple mobile payment platforms in a retail environment is vital to the customer experience. Payments have evolved over the years from cash to plastic and now mobile wallets are gaining popularity. When merchants accept mobile payments, consumers can streamline their time at the register because the transaction is quick, easy and convenient. The added security gives consumers peace-of-mind when they shop, because their data is secure and none of their credit card information is stored on the merchant's PoS (Point of Sale) terminal.

When it comes to payments, simplicity and security profoundly influence consumer behaviors. When I go to a convenient store and I see a sign that says "cash only", if I don't have cash, my patronage is everything except guaranteed. Sure, I can come back, but the likelihood is significantly low. Cashless customers are taking their business elsewhere in droves and similar to basic human nature people feel most comfortable where they feel accepted, even if it is pertaining to their extended self in this case, their wallet. Merchants and payment companies lose out on missed opportunities every day that a customer can’t complete a transaction due to the limited payment options that are offered.

Top of wallet payment type is a challenge that many mobile payment apps will have to adapt to. POS (Point Of Sale) payment inclusion at the store level will directly contribute to achieving a competitive edge, in the race to the top. With over 106 million account holders, PayPal has the potential to accelerate their mobile wallet user adoption and possibly race ahead of other big name players in the space such as Apple Pay, Samsung Pay, and Android Pay. According to a recently compiled mobile digital wallet payment statistic, PayPal ranked highest amongst its competitors, in regards to the percentage of smartphone owners worldwide who have ever used mobile payment apps.

While most PayPal account holders are familiar with their P2P (Peer-to-Peer) and online checkout capabilities, on September 15, 2015, PayPal announced their new deal with Macy’s Inc. and introduced their trifecta of payment options. Macy’s Inc. now offers PayPal to customers online, in store and on mobile. While there will be an omnichannel shift in the customer's shopping environment, there is an element of synergy when it comes to the payment experience at the transaction level: customers can use a Payment Code on the PayPal app, or on the Macy’s app at checkout. For those who have to see it to believe it, I tried out the payment option using my PayPal account. Once I selected the store I was at, I simply swiped right to pay and a unique QR (Quick Response) code appeared and was scanned at the terminal. The integration will also enable One Touch™, so customers who opt in can check out online and on mobile without having to type in any payment credentials, usernames or passwords.

This is now an opportunity for customers who typically shop online to shop in stores and engage with brands in a whole new way. Additionally, brands can provide a frictionless payment experience and focus more on the products, sales and customer service.