Thursday, September 22, 2011

PayPal Unveils the Future of Shopping

PayPal has been working on a service to provide a new payment technology that will make shopping at a store quicker and easier. Shopping has evolved tremendously since its start. Online shopping created the opportunity to shop twenty-four hours a day, everyday. PayPal is implementing new technologies to allow shoppers to receive coupons, scan barcodes, determine availability of an item, and finally purchasing it with a mobile device at the store.

This technology will make shopping extremely convenient for the customers. Instead of waiting in a long line to pay for clothes or groceries, or instead of waiting for the bill at a restaurant, customers will be able to pay right from their phone using PayPal. This will change the way people shop, and unlike online shopping, it will be possible to see in person what is going to be purchased. This service will undoubtedly cause less ruckus in stores especially during holidays and sale times.

This system is a customer self-service system similar to an ATM because it will allow the customers to use technology to make their own transactions. Companies will not need as many employees working at the cash registers. Less people will be waiting in line to purchase their items while there will be an increase in consumers using this service. PayPal’s plan is to eventually eliminate the need for cash registers and credit card terminals. This technology would change the way people shop forever.

PayPal will probably include a commission fee on every purchase made with this offline service. There are already more than one-hundred million users on PayPal. When this new payment plan is available, I think that the number of users will increase substantially because transactions will be processed more conveniently for the customers. Who wants to wait on a line to pay for an item, regardless if the line is small or long? Nobody does, and with the ability to pay via mobile device, who would not want to try it. Nobody enjoys waiting forever for the waiter to bring their check either, which would make the push of a button easier for everyone.

PayPal will gain the first mover advantage because it will be the first company to implement this type of service for its customers. Companies that want to compete will need to create a more efficient, problem free service if they want to gain the competitive advantage. This strategy of business is defined as above the line because PayPal is trying to increase revenue by offering a new product that will gain numerous customers. I believe this system will revolutionize the shopping world for the future and will make a faster, and more efficient way to shop.

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