PayPal Inc. (NYSE:PYPL) app has introduced a way of paying for things at farmers markets, stores, and anywhere through QR codes. All users have to scan the QR codes from a screen or printout using their phones, and there is no need for signatures, cards, or cash.
How PayPal touchless payment works
The mobile payment app works in two ways, where users can scan products’ QR codes and then pay via the app, or stores such as Walmart or CVS can scan the user’s QR code in the app under the Show to Pay feature to buy items in the store.
To purchase products at any store or farmers’ market, you have to scan the products with a cashier or self-checkout. After finishing the scan, you open your Venmo or PayPal app and tap “show to Pay” to create a QR code. You can complete your payment by scanning the QR code and then clicking “Finish and Pay” at the self-checkout, or if you scanned products with a cashier, they can scan and complete the payment.
Pandemic increasing contactless payment
In the wake of the pandemic, people moved to contactless payment, and PayPal followed the trend with the launch of a touch-free payment feature. The feature allows you to scan a QR code to make a payment. Although several companies such as MasterCard and Visa do offer this feature is mostly marketed for retailers. However, a PayPal account is free to open with millions of people already having one. Therefore, this difference means small merchants will offer touchless payments at their stores without buying new equipment, and also second-hand sellers on OfferUp and Craigslist can do the same.
The new feature available in the PayPal mobile payment app is part of the growing trend of contactless payment at stores to give customers peace to reduce the spread of COVID-19. It is a feature that was starting to roll out before the pandemic, but adoption ramped up with the COVID-19 pandemic. Online grocery deliveries, delivery robots, and curbside pickup increased as people practiced social distancing.