The financial industry is desperately seeking for solutions to put into practice to resurrect the banking system. While the mobile industry is expanding in an exponential manner, the credit card institutions and banks got the brilliant idea of exploring the niche. PayPal has also joined the trio, offering a new and auspicious service: “mobile wallet.”
Having an impressive background of coverage into the online payments market, PayPal is shifting to mobile environment, trying to explore one of the most used and traditional banking services – the check. PayPal’s officials comment that “There’s a great opportunity to replace the wallet and for the mobile phone to become the wallet.”
eBays claims that the check cashing service is appealing, as they experienced a $100,000 sales in mobile checks in less than 48 hours. The mobile customers used their PayPal application and they added money to their PayPal account by just taking a photo of an existing real check. In addition, PayPal brings the information that it processed more than $1 million checks. Although the figures are considerable smaller than the amount of checks that banking system handles each day (more than $30 billion per day), there is room on the market for improvements.
Therefore, PayPal decided to invest more efforts into this emerging business, already signing up to 200 contracts with different dealers for check transactions. The spread of the idea of using PayPal apps instead of a physical credit card is fast paced, being motivated by the interest that comes both from the clients and merchandisers.
We will probably soon assist to the „future of online money”, as many services expand their share in the virtual services – PayPal recently enhanced the mobility of its services, developing an open platform, and Facebook launched its Facebook credits application. PayPal shown signs of rush in innovating the financial products. Other startups, such as Groupon’s social discounts or Sprint’s Mobile Wallet, proved to monetize the mobile commerce successfully.