Last May we reported that PayPal was testing a partnership with Coinstar in Dallas where consumers were able to deposit coins and cash instantly into their PayPal accounts through the company’s machines. After a successful run, 40 percent of the consumers who used a Coinstar kiosk to fund their PayPal account said they would come back to use it again, the company shared.
Now PayPal is reportedly planning another limited run partnership with Coinstar in New York. Though details are scarce at this time, VentureBeat paid a visit to the mobile giant’s Manhattan office to chat with Dan Schatt, PayPal’s general manager of financial innovations.
Check out the video below where VB staffer Devindra Hardawar tested the process with Schatt. “As you can see in the video below (edited slightly to omit my phone number), the process is fairly simple: Dump coins into the Coinstar machine, plug in the phone number tied to your PayPal account, and then wait for the kiosk to count your coins. You’ll get a paper receipt detailing the transaction, as well as a message from PayPal almost instantly,” Hardawar said.
He noted that the only catch is that you’ll have to pay the typical $3 Coinstar fee to send cash to your PayPal account, while Coinstar offers electronic certificates for free.
Schatt added, “This is real time electronification of cash…the fatest way to do things like take $20 and turn it into 20 iTunes files.”