PayPal Trumps Square’s Deal With Starbucks by Partnering With Discover

Sorry, but I as one of those 50 million Paypal users will continue to refuse to do business using Paypal unless absolutely necessary for ease of use (sadly there still is no easier way to have people pay me for services besides PayPal from various other countries in the world).

I don't trust them with my money, and I certainly don't trust them to handle it correctly.

Re: PayPal Trumps Square’s Deal With Starbucks by Partnering With Discover

#5

Post by ankeshk » Wed, Aug 22, 2012, 2:24 PM UTC

This news is exciting because it marks the beginning of offline wallet-less transactions. You can go to a store with nothing and end up buying something with your phone number and a pin code.

PayPal retains its crown for convenient payments. Making offline payments with your phone number and a pin code indeed seems like the future.

Its unfortunate however that PayPal is not vendor friendly.

Re: PayPal Trumps Square’s Deal With Starbucks by Partnering With Discover

#6

Post by ConstantineXVI » Wed, Aug 22, 2012, 2:28 PM UTC

podperson wrote: post #3

I think Starbucks are more common than places that take Discover.

AFAIK, McDonald's and Walmart take Discover; McDonald's alone has more locations than Starbucks.

That said, I can't remember the last time I've seen anyone use Discover anywhere. Starbucks has far better visibility; they still likely have the marketing advantage.

Re: PayPal Trumps Square’s Deal With Starbucks by Partnering With Discover

#7

Post by s_henry_paulson » Wed, Aug 22, 2012, 2:34 PM UTC

As with many new technology advances in the finance sector, I predict this to be use for crime.

Right now it's easy for criminals to get money into paypal accounts, but difficult to get money in their hands, because it often requires steps that involve tying a transaction to a bank account or something traceable.

If someone can just walk into a store and type a couple of numbers into a keypad and walk out with items worth cash, it gives the criminals an easy gateway to spend their ill-gotten funds.

Re: PayPal Trumps Square’s Deal With Starbucks by Partnering With Discover

#8

Post by ConstantineXVI » Wed, Aug 22, 2012, 2:40 PM UTC

This makes it sound like PayPal's proxying through Discover; building within their platform. I don't see any potential way this could backfire when Discover decides it wants to do it's own mobile payments. None at all.

Re: PayPal Trumps Square’s Deal With Starbucks by Partnering With Discover

#9

Post by paulsutter » Wed, Aug 22, 2012, 2:54 PM UTC

Starbucks using pay-by-name will be a breakthrough, assuming that's where the Square partnership is going. Since Starbucks is already asking for your name when you order coffee, it could turn into a great customer experience that would build broad momentum for pay-by-name.

Is this PayPal agreement just adding a new and more complicated option to the existing terminal base? Will retail clerks even know what it is, and will there be any reason for a consumer to migrate from credit card use?

Re: PayPal Trumps Square’s Deal With Starbucks by Partnering With Discover

#10

Post by freehunter » Wed, Aug 22, 2012, 3:01 PM UTC

X-Istence wrote: post #4

Sorry, but I as one of those 50 million Paypal users will continue to refuse to do business using Paypal unless absolutely necessary for ease of use (sadly there still is no easier way to have people pay me for services besides PayPal from various other countries in the world). I don't trust them with my money, and I certainly don't trust them to handle it correctly.

Yeah, I only use PayPal for overseas transactions as well. I don't trust PayPal, but I trust overseas businesses less and sometimes its the only way to make a transaction.