PayPal has recently expanded their repertoire to include payments at brick and mortar stores, much to the ire of credit card companies. As reported on Wall Street Journal, a senior exec from Visa fires a warning shot over the bow of PayPal by accusing them of exposing their customers to the possibility of fraud. PayPal has recently rolled out a trial version of their payment service which allows registered PayPal customers to use their account to pay for their in-store purchases instead of using traditional cash or credit cards.
Of course this has lead to the credit cards companies to come out swinging to defend their traditional revenue streams from a competitor who looks to be aggressively targeting their market share. In addition to the accusation that PayPal are opening up their customers to fraud, Visa's senior executive also questioned whether PayPal is able to handle the similar number of transactions that Visa is currently handling. Visa handles 20,000 transactions a second in real time!
With Visa and MasterCard actively working with technology giants such as Google in promoting NFC technology to be used for payments, we can expect the â€˜payments battle superiority' to rage on for a much longer timeâ€¦.