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App currently accepted at some clothing stores, but expected to roll out further soon

PayPal launches phone app for in-store payment

Online payment firm PayPal has widened its reach to bricks and mortar retail stores with a new iPhone and Android NFC-free app for smartphones.

The new app – PayPal InStore – currently works in 230 fashion stores, but is expected to roll out further soon.

When a user wants to make payment, they simply open the app on their phone, tap Pay InStore to generate a unique barcode and number, which the shop assistant can then scan. The user’s PayPal account is then charged, and it works regardless of whether wi-fi or a mobile network is available.

The PayPal differs from other mobile-payment options as it doesn’t require NFC technology to make the payment.

Cameron McLean, PayPal MD, said: "Today’s move also underlines our view that mobile payments don’t need near field communication technology to succeed. PayPal’s ‘pay by mobile’ service works with the phones most of our customers already own. And our retail partner doesn’t have to install new systems to take in-store mobile payments."

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