PayPal is setting up a plan to strengthen its digital wallet service. The company builds its partnership with Google to make the service accessible through Android Pay. With the new service, the Android users can make payment only by tapping their phone from PayPal accounts. Of course, Android users can make PayPal payment even though there are at a restaurant, drug stores, grocery stores, or even coffee shop. How does it work?

Integration of PayPal Digital Wallet into Android

The new agreement between PayPal and Google involves integration of PayPal’s Digital Wallet into Google’s Android Pay. It works by linking the PayPal account with Google’s Android Pay. The service will be available on smartphones that run Android operating system. No information is available on the exclusive criteria of Android version that will not benefit from the services. However, it is predicted that the service will be available on most versions of Android OS.

Actually, PayPal has been introduced into Google’s Play App store as a digital payment method. It is a simple way to make payment on online basis. However, owners of PayPal Digital Wallet account had been faced with limited services for making payment, drawing money, and converting into bank account.  Actually, PayPal has partnered with many banks, wireless carriers, and credit card issuers to facilitate its customers in making payment, transferring money, and shopping on the go.

With Android Pay, the smartphone owners will benefit from convenience in making Payment in stores. Wherever their can connect to internet with Android smartphone, they can make digital payment. This way, the company expects that the PayPal customers will use the Digital Wallet more frequently. Now, the customers on average use PayPal for two or three transactions every month.

How the Digital Wallet Partnership Benefits Both Parties

Of course, the new agreement must have benefits for both PayPal and Google. For PayPal, the new agreement is expected to invite more transactions, more involvement, and more customers. It is because the digital wallet is more flexible in use and can be used in more places. On the other hand, Google will benefits from the increasing use of Android Pay.

The new agreement may boost the use of Google’s mobile payment system. As widely known, Google Pay is also faced with tighter challenge from its main competitors, particularly Apple Pay, and even from the large phone maker, namely Samsung Pay.

However, the effort of both parties to strengthen the relationship has rekindled speculations about acquisition. After splitting from its parent company, eBay in 2017, PayPal has been looking for a new parent company. Its main targets include tech companies or large-scale financial institutions. Online shoppers still refer to use credit cards since they can make payment only by swiping the card. PayPal, which uses near-field communication (NFC) technology, is faced with a challenge to embrace the online shoppers.

Of course, PayPal’s effort to promote the use of digital wallet does not stop here. After obtaining partnership with Google’s digital wallet, it still has to find the way for partnership with Apple’s digital wallet, namely Apple Pay.