McDonald’s and PayPal team to provide new service
PayPal has announced that it will be testing its new mobile payment system at 30 McDonald’s restaurants throughout France. PayPal has shown interest in mobile commerce, but has all but abandoned NFC technology for its mobile payment ventures. Instead, the commerce company has opted to provide payment services that are more inclusive to those without NFC-enabled mobile devices. The company’s initiative in France positions it to compete with similar mobile commerce initiatives that have been launched through the partnership of Square and Starbucks.
Customers to make payments using PayPal service
McDonald’s customers will be able to use their smart phones to make purchases at participating restaurants. Customers will be able to place their order while standing in line by using a McDonald’s mobile application. They will then pay for this order using their PayPal account. If the system is successful, not only could it cut down on wait times at restaurants, but it could also significantly increase the sales at some stores.
NFC technology may not be able to meet demands of mobile commerce industry
PayPal has chosen to abandon NFC technology in favor of its own because it believes that NFC is not capable of handling the demands that will be placed on it. Most mobile commerce systems are based heavily on NFC technology, which chips being installed in smart phones and in payment terminals. The problem is that these commerce systems can only be used by those with NFC-enabled mobile devices. There are currently very few of these devices available in the current market, making mobile commerce a somewhat exclusive industry for the time being.
PayPal sees turbulence future for NFC technology
Mobile technology is beginning to play a very important role in the daily lives of consumers. Soon, consumers are expected to forgo traditional forms of commerce in favor of mobile commerce. NFC technology has established a strong foundation upon which the mobile commerce industry can develop; PayPal is not convinced that NFC can live up to the expectations that have been placed on it.