PayPal is using the coffee shop on its corporate campus as a test site for a new payment method that uses beacons and wearable devices, according to Mobile Commerce Daily.
“We began the pilot program earlier this year and it has been performing well since,” Kathy Chui, senior PR manager at PayPal told Mobile Commerce Daily.
The beacon will detect when a customer enters the store, it will then send a push notification to the person’s wearable device. The customer can then use their wearable device, like a smartwatch, to buy their coffee or redeem an offer.
PayPal says that this is a natural progression in beacon-enabled payments.
When the user is about to check-out, the photo will automatically appear on the point-of-sale system, enabling employees behind the counter to easily greet a customer by name. Another push notification is sent once a sale is rung up, enabling users to tap their wearable to confirm payment.
“Because the devices are issued by a non-carrier, there shouldn’t be the historical battles for access to a secure element,” Drew Sievers, founding partner at fintech investor Operative Capital told Mobile Commerce Daily. “That should accelerate the usage and adoption since there are fewer intermediary hurdles to overcome when launching a product.
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