PayPal (NASDAQ:PYPL) has unveiled an eagerly awaited feature for merchants using Venmo and Zettle apps: Tap to Pay on iPhone. This innovation aims to empower businesses, particularly small ones, by enabling them to accept contactless payments directly on their iPhones without needing additional hardware or incurring upfront costs.
With this new capability, businesses can swiftly start accepting contactless cards and digital wallets, enhancing operational efficiency and cash flow. Sales proceeds collected through this feature will be seamlessly deposited directly into the Venmo or PayPal Zettle accounts of the businesses. Moreover, merchants can utilize the feature to add taxes, accept tips, issue receipts, and process refunds without requiring additional hardware support.
This move is expected to bolster PayPal’s momentum among small businesses. Currently, the Tap to Pay feature is available for all Venmo business profiles and PayPal Zettle users in the United States.
Building on its commitment to empowering small businesses, PayPal had introduced Tap to Pay on Android for Venmo and Zettle users last year, further expanding seamless payment options.
In addition to Tap to Pay, PayPal offers a range of features enabling small businesses to accept payments via PayPal, credit and debit cards, digital wallets, Venmo, PayPal Pay Later, and Apple Pay. Notably, customers can now add their PayPal and Venmo credit or debit cards to Apple Wallet, facilitating secure and swift payments on iPhone or Apple Watch, while earning rewards.
Furthermore, PayPal’s subsidiary, Xoom, offers Debit Card Deposit, allowing U.S. customers to conveniently send money directly to friends and family’s eligible Visa debit cards in 25 countries.
Looking ahead, PayPal plans to introduce six AI-driven personalization innovations to revolutionize commerce for both merchants and consumers this year, further enhancing its portfolio offerings and driving customer momentum.
The digital payment market is projected to witness substantial growth, with transaction values expected to reach $11.55 trillion in 2024 and $16.62 trillion by 2028, according to Statista. This promising market outlook underscores PayPal’s growth prospects and its potential to continue driving financial performance, which may instill confidence among investors.
Despite these positive developments, PayPal faces intense competition in the digital payment market, posing a risk to its market position. Additionally, the company is grappling with the continuous loss of unengaged accounts. Nonetheless, the Zacks Consensus Estimate for first-quarter 2024 revenues indicates growth of 6.6% from the year-ago quarter’s reported figure.
While PYPL has experienced a year-to-date decline of 4.8%, compared to the industry’s growth of 17.4%, its strategic initiatives and expanding payment solution offerings position it well for future growth amidst a dynamic market landscape.
Featured Image: Unsplash
