Blog post by: Leilani Doyle
PayPal may very well turn out to be the next big payment network by strategically expanding their presence into the retail world. Guitar Center recently announced they will now accept PayPal at the POS for all of their 235 retail outlets. Customers will have a choice to pay using their PayPal card or their mobile device in combination with PayPal Pin.
The Guitar Center was a natural place for PayPal to expand and gain some serious traction since the demographic of The Guitar Center tends to be younger and more likely to already have a PayPal account. There is also the cool factor. Just look at how successful the cool factor has been in elevating Facebook and iPhones into the mainstream. This approach of targeting a select demographic, like Guitar Center patrons, will likely serve to make PayPal the cool way to pay online, mobile or in-store with a card.
This move should send traditional payment gateways and networks scurrying to protect their dominance. It will be interesting to see if some of the existing payment moguls make any headway in adapting their current business strategies to fit a more simple, and real-time, approach to payment processing, clearing and settlement. With billions of dollars in revenue on the line, I am guessing we should see some serious action over the next twelve months.
See source article: The Business Wire November 2012