Nov 25, 2013 Dave King
Uber provides car services for consumers in many parts of the United States, and with eBay buying its transaction processing company - Braintree - PayPal mobile payments are now being implemented.
Riders in the U.S., France, Germany, Italy and the Netherlands are now able to pay their fares with PayPal, according to GigaOM. Previously, consumers could only pay for services with credit cards, which were processed by Braintree. This move could open Uber up to a broader range of customers.
"Working together, we are able to help expand Uber's global reach and provide an easier way for consumers to experience their first Uber ride," Stan Chudnovsky, head of growth and special operations at PayPal, wrote in the company's blog. "In countries where credit card use is not as prevalent, the ability to pay with PayPal is a big win for consumers."
Mobile payments can provide businesses with multiple benefits. For one, these systems offer a convenience to consumers who use their smartphones for everything - leading to a happier clients. But, there are also other benefits, according to Open Forum, such as improving incentive and loyalty programs.
With the ability to track how customers spend their money, businesses are able to target incentives. For example, people who frequently use the high-end car service at Uber may be offered a discount via their mobile devices.
Another reason businesses could benefit from mobile payment systems is the ability to save money on credit card fees. Each time a customer swipes plastic, a company pays a fee. While electronic payment systems also charge a fee, Open Forum said it is often less than what is charged by credit card companies.