PayPal inks Macy’s deal in fight to take over in-store transactions

PayPal is ramping up its presence in brick and mortar stores as more companies rush to create mobile apps that allow consumers to pay at physical retailers with their phone.

Today the company announced a partnership with Macy’s that will allow the department store’s customers to use PayPal at the register. When it comes time to pay, consumers can open up the PayPal app, select the store they’re in, and scan the app’s QR code. The deal extends to Macy’s Bloomingdale’s properties, as well.

In addition to using the mobile PayPal app in its stores, Macy’s is also integrating PayPal’s One Touch technology into its shopping app so consumers can consistently pay with PayPal across platforms.

“Both PayPal and Macy’s share this common belief that creating a truly omni-channel experience allows consumers to buy what they want, when they want, and how they want,” said PayPal vice president of retail Brad Brodigan, adding, “We are finding there is no line between where the customer shops.”

The announcement of the Macy’s partnership comes on the heels of a partnership between PayPal and sandwich chain Subway. At the end of July, Subway revealed that it would be allowing customers to use PayPal in stores. Lunch-seekers can now place their order through the PayPal app, pay, and then pick up their food.

PayPal has drummed up a bevy of other partners as well, including Home Depot, Toys ‘R’ Us, and Foot Locker. In total, the company has partnered with 10 million merchants globally, but it doesn’t differentiate between those that accept its mobile app in stores and those that use PayPal online.

Though PayPal has long been a payment method for online shopping, there are lots of other digital wallets crowding the space. Since launching last November, Apple Pay has garnered partnerships with 68 major retailers who now accept its payment method. Android Pay, which only started rolling out last week, already has some twenty partners.

But where PayPal stands to beat them all is in its partnerships with small merchants that use PayPal to run their shops both online and offline.

PayPal is already beginning to roll out its Macy’s payment option, and it will be available in 100 percent of Macy’s stores by the end of September.