PayPal's offline payment service could soon arrive, thanks to the EU's DMA. But, how will the Digital Markets Act of the European Union help make this happen?
As of writing, PayPal hasn't ventured into the area of offline payment. Because of this, its users are not able to take advantage of the payment app to make purchases in restaurants and other physical stores.
A sign is posted in front of PayPal headquarters on February 02, 2023 in San Jose, California. PayPal has announced plans to lay off 2,000 employees, nearly 7 percent of its workforce.
But, PayPal said that this will soon change since the DMA can allow it to explore the offline payment area. Here's what consumers need to know.
PayPal's Offline Payment Service to Arrive Soon!
According to Tech Crunch, PayPal confirmed that it is already working on a new consumer app for its mobile customers. This means that it is ready to benefit from what DMA has to offer once it goes into effect in March.
In September 2023, gatekeepers included in DMA were listed by the EU. Officials said that these gatekeepers are required to comply with the new legislation starting in March, as reported by The Verge.
Since the Digital Markets Act specifically aims to ensure fairer competition among tech companies, it will include allowing certain technologies to be used by other technology firms.
Among these is the NFC (near-field communication) technology. If you have no idea what this is, NFC is the tech that powers Apple Pay in their own mobile wallet applications.
Once DMA is fully implemented, PayPal and other payment companies will be able to use NFC just like Apple Pay. Aside from this, the EU's Digital Markets Act will also enable iPhone users to switch to another mobile wallet as their default.
This will allow PayPal and other payment apps a chance to attract iPhone users.
Read Also: PayPal to Lay Off 2,500 Workers as Company Battles Rising Competition
What PayPal CEO Announced
In this photo illustration, an eBay website is seen on a computer screen and the PayPal website is seen on an iphone on September 30, 2014 in Miami, Florida. Today, eBay announced it will split from the payments service PayPal, forming two independently traded companies beginning in 2015.
During PayPal's Q4 earnings call, CEO Alex Chriss said that they are already tracking the effects of DMA in their company. When he was asked how they would take advantage of the DMA, Chriss shared an answer that would not sound insensitive to Apple.
He said that Apple is a great partner of PayPal. But, he added that they are expecting the DMA to allow them to bring their payment app outside the world of online payments.
Alex Chriss said that PayPal users are already demanding omnichannel and offline solutions.
"So, we'll be working closely on this. And when it is available, we will be ready to be able to deliver for our customers, both online and offline," he added.
This means that PayPal could soon be able to make offline transactions, allowing consumers to use it to pay for their food in restaurants, purchase gadgets from electronics stores, etc.
Related Article: Apple Offers Sharing Tap-And-Go Payment Method With Competitors in EU Antitrust Dispute
