Google partners with PayPal to bring new checkout options for Android Pay

The two companies have announced they are teaming up to allow users to access their accounts at physical stores.

We’re used to hearing about new banks that have signed on to support Android Pay as Google ever-expands its mobile purchasing system. But an announcement this morning is looking to add even more value. Now you’ll be able to use Android Pay even if you don’t have a bank or credit card to add to your wallet.

Google has announced a partnership with PayPal that allows you to use your account to buy things anywhere Android Pay is accepted. While PayPal users have long been able to access their accounts in the real world via PayPal Credit, the new Android Pay integration will open up mobile contactless payments to a wide array of people, allowing them to use the balances to pay for things at McDonalds or Wal-Mart.

The partnership is a boon for Android Pay, which is competing against Apple Pay, Samsung Pay, and other store-based services for dominance. As Google describes, “Millions of people already use their PayPal account to make online purchases, receive payments and send money to friends and family. Soon they can start using the same PayPal account to tap and pay with their phones in stores and speed through checkout in Android apps.”

PayPal says that it processed over $100 billion in mobile payment volume last year and hopes the Android Pay partnership will expand its reach. The new service, which is coming soon, will be limited to PayPal balances at launch, and will expand to include credit cards stored in your account over the coming months.

Why this matters: Contactless payments are clearly the future of checkouts, and Android Pay is right at the forefront of the movement. With the new PayPal integration, along with the new Android Wear 2.0 support, Android Pay is poised to continue leading the charge.

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Michael Simon

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