PayPal and Android Pay announced this morning that they’re teaming up on a mobile payments offering for brick-and-mortar retailers. Through the collaboration, shoppers will be able to use their accounts to make payments at stores by tapping and paying via their smartphones.
Moving into brick-and-mortar retailers
The digital payments processing firm said that sometime soon, U.S. consumers will be able to use their PayPal accounts through Android Pay at a wide variety of brick-and-mortar retailers across the country. Among the retailers that will be accepting these forms of payment are Walgreens and Dunkin’ Donuts, although any that accept Android Pay as a form of payment will enable customers to use their PayPal accounts through their digital wallets in the app.
The company said that at first, customers will be able to use the funds they have available in their PayPal accounts. However, later it will enable customers to pay using credit or debit cards they have stored in their accounts. The digital payments firm plans to use the tokenization partnerships it recently struck with major credit card networks.
At the time of launch, the company is partnering with Discover, which means that PayPal inside of Android Pay will be accepted at retailers that accept Discover and Android Pay, according to TechCrunch.
Android Pay to start offering PayPal as an option in apps
PayPal users will also be able pay for things using their accounts in apps on their Android devices. Google said the feature will start rolling out over the next few weeks. U.S. customers just need to link their account to Android Pay in order to start using it.
Android Pay’s integration with the popular payments service seems like a strike at Apple Pay and other mobile payment solutions, as none of them offer it. It’s unclear whether PayPal will try to partner with Apple Pay or any other digital payments platforms as it attempts to expand its reach even further.
The integration will be supported on Android 4.4 or higher, including Nougat, Marshmallow, Lollipop and KitKat.