With a PayPal account, users can send and receive payments from their using text messaging from their mobile phones.
Making a payment instantly from a PayPal account and a mobile phone can be accomplished with a simple text message. MobileCrunch and several other outlets reported on the latest development with eBay’s payment unit.
While making payments by phone has been a feature offered by banks and credit unions for years, the payee does not receive payment immediately. Usually the bank’s payment service cuts a check and mails it out, unless the payee can receive electronic payments. Even those are not instantaneous.
PayPal for Mobile is that fast, though. Users can send money by texting 729725 (PAYPAL) with the amount and recipient’s phone number. Also, users can call PayPal’s automated voice system to make a payment.
There are several options users can add to the basic “send cash to recipient” text message. PayPal defaults to the primary currency on a user’s account, but by adding CAD for Canadian dollars, GBP for British pounds, AUD for Australian dollars, EUR for Euros, or JPY for Yen to the request, the payment can be made in that currency.
One can add a note to the recipient, or share the registered phone number or address with the payee if PayPal for mobile is being used for purchasing an item.
PayPal wants to see users making purchases from their mobiles. The “Text to Buy” feature, when supported by a merchant, allows the user to buy items via their mobile phones. By texting the item code shown on an ad to the number displayed, the order process begins.
The user receives a callback to confirm the order, and once that has been done the order is processed. PayPal does not have any “Text to Buy” offers listed yet, but considering they are owned by eBay, one expects this will be a feature used throughout the online auction site.
Using the feature requires the user to enter the PayPal Mobile PIN associated with the account. And if the call drops before the payment success message is played, the payment is canceled automatically. That should minimize the potential for accidentally making a double purchase of an item.
VoIP blogger Alec Saunders posted a suggestion for PayPal that would be a compelling option for holiday shoppers doing some catalog shopping while away from the computer:
My fantasy scenario? Mid-call payments. Say, for instance, I am chatting with 1-800-FLOWERS about the fact that I forgot my mother’s birthday. After ordering a beautiful bouquet, the florist might say “How would you like to pay for that”, and I say “I’ll paypal it”. Then I press *P, confirm the amount and enter my PIN. At that point the money is transferred.
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David Utter is a staff writer for Murdok covering technology and business.
