Google’s Android Pay just picked up a new partner, Paypal.
The new partnership will allow Android Pay users to add their Paypal account and pay with their cash balance, credit card or debit card in stores with tap to pay terminals. The formal rivals have apparently buried the hatchet and decided that the relationship benefits them both. Bill Ready, EVP, Chief Operating Officer of Paypal, said “Coming soon, consumers in the U.S. will be able to use PayPal in Android Pay at retailers from Walgreens to Dunkin’ Donuts. This partnership will enable our customers to pay across even more contexts, and will extend PayPal’s mobile leadership and reach as consumers become more comfortable shopping and buying on their mobile devices. ” Android Pay is giving users more payment options and Paypal is gaining the ability to leverage NFC and tap to pay terminals which they previous had no access to. Paypal already has 200 million active users on mobile and has processed $102 billion in mobile payment last year alone. They also transacted over two billion mobile transactions which is massive reach. Adding some of those users to Android Pay could kick start the fledgling product.
The partnership helps Android Pay continue to take on it’s main rival Apple Pay and to a lessen extent Samsung Pay, both whom do not have a relationship with Paypal. This is a key advantage for Google in the battle for mobile payment and mobile wallet integration. It’s a little surprising to hear they are teaming up but Paypal doesn’t have a mobile wallet solution and allowing Android Pay users to add Paypal will instantly increase their footprint. Google also just announced that they added more banks to their services so a wider variety of credit cards are now supported in the platform. The combination of multiple payment options and the reach of Android, Google has a pretty solid footing and can continue to grow Android Pay.