PayPal, the online payment pioneer that leveraged its gigantic consumer base to enter the brick-and-mortar arena as well, takes home the Judges Choice Award in the Best Processor category at the 2013 CNP Awards. In an increasingly omnichannel retail environment, PayPal is a leader in online and mobile payments and making inroads in mobile card acceptance with PayPal Here and in-store with more than two dozen national retailers representing more than 18,000 physical locations accepting PayPal at the POS.
During the first quarter of 2013, PayPal reported processing 682 million transactions worth $41 billion, a 20 percent year-over-year increase. During 2012, the company processed $14 billion in mobile transactions, a 250 percent increase from 2011.
The core of PayPal’s success—and the reason many observers give the company a chance to become dominant in payments moving into the mobile, omnichannel age—is the 128 million active user accounts with payment information already stored in the cloud.
“Many members of the [payments] industry are chasing the fallacy that is the ‘mobile wallet,’" the company says. “Why isn’t PayPal a mobile wallet? Consumers need to see the value in order to switch from what they do today. That value can’t just be a different way to pay. It has to be better. It will be provided courtesy of cloud computing—not on a chip in your phone. PayPal’s cloud approach evolves the wallet from a physical thing—whether a traditional wallet or a phone—to a seamless, connected experience that follows you wherever you go and feeds you what you want, when you want it. Putting your wallet in the cloud and making it smart enough to work out the best way to pay for you solves a real consumer problem that mobile wallets simply do not.”
According to PayPal, its open platform lets merchants cater to consumers and all the ways they want to pay. The company says it offers shoppers one simple way to pay online, via mobile phone and in-store as it continues to add retailers that accept PayPal. There are no limitations on phones, carriers, banks (with funding sources), or types of payments (prepaid, debit, credit) that can be used. And, the company enables merchant promotions to be stored in the wallet and automatically applied to the transaction.
PayPal’s current processing power, its cloud-based wallet, its 128 million users and its adaptability in an environment where retailers want to use every available channel to sell their goods and services convinced our panel of judges that PayPal deserves the Best Processor honor this year.