PayPal ramps up offline payment operations, partners with eateries

The cloud payment service provider has partnered with EatNow and OrderMate to expand the acceptance of its payment offering to thousands of restaurants, cafes, and bars.

PayPal is fleshing out its offline payments business, teaming up with hospitality partners to expand the reach of its payments service to thousands of eateries across Australia.

In May, PayPal president David Marcus confirmed the company's intention to increase the number of retail stores that accept PayPal from 250,000 to 2 million by December. Home Depot, Foot Locker, and Toys R Us are among the big retailers that have warmed to PayPal in the US.

In Australia, the number of offline merchants that use PayPal has been relatively small. Previously, it was only 160 stores, but that number will increase to 2,000.

Some retailers, such as Glue, accept PayPal in only a select number of stores. Retail stores can integrate PayPal software into their existing point of sale (POS) to allow customers to use a mobile app to "check in" at participating stores and make payments directly on their mobile devices.

By partnering with EatNow, part of the Catch of the Day family, and hospitality POS provider OrderMate, PayPal has increased its reach into thousands of cafes, restaurants, and bars nationally.

EatNow has around 2,000 restaurant partners, while OrderMate has a network of over 1,000 cafes, bars, and restaurants. With these new relationships, PayPal now has over 90,000 Australian merchants that accept its payment service online, offline, and via mobile devices.

"As we continue to work in collaboration with other leading entrepreneurs and innovators of all sizes, PayPal's mobile application will increasingly be seen as a destination for consumers to browse local businesses, order ahead, and transact at point of sale," PayPal Australia managing director Jeff Clementz said in a statement.

PayPal is pushing into the offline space as competitors MasterCard and Visa are trying to gain ground in the online payments space. Earlier this month, Visa announced its digital wallet service, which operates very similarly to PayPal's online payment system and will be released in Australia before Christmas.

Visa faces stiff competition with PayPal in this field, given the eBay subsidiary has over 110 million active users worldwide. But Visa said one of the drawcards of is that the service has the backing of a number of major financial institutions, something that PayPal does not have.

MasterCard, on the other hand, launched its PayPass e-commerce wallet earlier this year .