PayPal and InComm on Thursday (July 30) unveiled a QR code payment system that will enable touchless checkouts by PayPal and Venmo users with their mobile phones at brick-and-mortar stores.
CVS is the first retailer to sign on with the new touch-free payment system, with plans to roll it out in the fourth quarter at its 8,200 stand-alone stores across the country, according to the announcement.
Under the new system, users of PayPal and Venmo (now a PayPal subsidiary) will be able to pay for items as they shop with a scan of a QR code that will be transmitted through their mobile app.
With the new touchless payment technology, PayPal users can draw upon their debit or credit cards, bank accounts, PayPal balance, or their PayPal Credit accounts as well. Venmo users have a similar set of options, including paying with their Venmo balance or Venmo Rewards accounts.
No fees will be charged when PayPal or Venmo users pay for items using the touchless, QR code system, the companies said.
The rollout comes amid rising demand for alternative ways of shopping and purchasing everything from prescriptions to groceries amid the coronavirus crisis.
“In the midst of COVID-19, we have seen an incredible acceleration of digital payments and touch-free payments,” PayPal Executive Vice President and Chief Product Officer Mark Britto said in a press release. “Companies of all types and sizes are looking for ways to maintain the safety of their customers and employees … QR codes complement these and provide retailers an additional payment method that furthers this touch-free mission.”
PayPal saw strong growth in the second quarter, with net income of $1.53 billion for the second quarter, up from $823 million during the same quarter last year.
Revenue shot up to $5.26 billion, for a 25 percent increase, while payment volume also soared, hitting $222 billion, up from $172 billion during the second quarter of 2019.
PayPal beat analyst expectations on both revenue and payment volume, reporting 60 million active Venmo accounts as well.