PayPal Mobile – an idea whose time has come
Many people don't know that PayPal started as a mobile payment service. Back in 1998, PayPal's beginnings were based on the idea that people would “beam money” to each other using their Palm Pilots. But back then, consumers just weren't ready for mobile payments – mobile devices weren't as common as they are today, and e-commerce wasn't a part of everyday life.

But things have changed a lot since then. Not only are consumers buying more mobile devices, they're becoming a part of our lives around the clock. A recent survey of mobile phone users in the United States found that 60% keep their cell phones turned on and within reach 21-24 hours per day. The same survey revealed that there are three things people will not leave their homes without – their wallets, keys, and cell phones.

The mobile phone is fast becoming another indispensable convenience of the 21st century – a powerful little center of communication, entertainment, and information. Meanwhile, e-commerce also continues to grow rapidly—because shopping online has become easier, safer, and more mainstream.

With consumer confidence at an all time high, and with mobile phones in the hands of almost every consumer, the time was right for the two to come together. And that's exactly what happened in early April, when Jeff Jordan, President of PayPal, unveiled PayPal Mobile – a secure, fast and easy way for people to send money anytime, anywhere – from their cell phones!

Consumers are ready for mobile commerce
“The time has never been better for the merging of e-commerce and wireless devices,” said Jordan at his keynote address at the CTIA Wireless Show in Las Vegas, Nevada. “Mobile commerce needs the same thing e-commerce did – a safe, simple, and an inexpensive way to send payments.”

With PayPal Mobile, consumers can send money to a friend, or "Text to Buy" an item, such as a DVD, or "Text to Give" to send money to a charitable organization – all using their mobile phones.

Jordan explained how simple it is to start using PayPal Mobile. “You start with a PayPal account. You register your mobile phone number, select a Personal Identification Number (PIN). Then PayPal calls you back to verify the PIN and complete registration. And you're set!”

Learn more about PayPal Mobile: Overview Send Money by Phone Text to Buy Security and Privacy Frequently Asked Questions

In its simplest form, PayPal Mobile allows you to send money to friends or family. PayPal calls them Person to Person (P2P) payments. Here's a typical scenario: If you go out to lunch with a co-worker, and he picks up the tab, you can pay him via PayPal from your mobile phone. All you have to do is send a text message to PayPal with instructions to send the money to your coworker's mobile phone. The text message would be addressed to PAYPAL, and would look something like this – “Send 20 to 408-555-5555.” PayPal will then call you back to confirm the transaction. All you have to do at that point is enter your PIN, and the money is instantly sent to your co-worker's PayPal account.

Besides the ease of sending money to friends or family, PayPal Mobile also lets you buy items conveniently, through the Text to Buy service. You can also make charitable donations through the Text to Give service.

Text to Buy
Text to Buy is a service that lets you buy almost anything from your mobile phone with a text message. Jeff Jordan was excited by the new realm of possibilities this could open up for the consumer. “Now consumers can buy things on the fly, like CDs, DVDs, shoes and clothing – eventually pretty much anything – with a simple text message."

Jordan explained that some of the biggest names in retail and entertainment were part of the Text to Buy service. For instance, Fox Entertainment offers Text to Buy for new DVDs. Universal Music is also offering a number of new CDs. Other partners include Bravo, MTV, and the NBA – which is offering special edition basketballs from some of the top players in the league.

Here's how it works. If you're in a shopping mall, strolling along the street, or flipping the pages of a magazine at the airport while waiting for your flight, and you see an ad for a new DVD, or a new type of running shoes, look closely to the bottom of the ad. If the product is available for purchase through PayPal Mobile, you will see a specific product code at the bottom of the page. Just send this code to PayPal as a text message using your mobile phone. PayPal will call you back to verify your PIN number, and will mail the DVD or the shoes to the address on file in your PayPal account.

Text to Buy is as simple as sending a text message from your mobile phone

Text to Give
Text to Give is very similar to Text to Buy, except that the payment goes to a charity organization, such as UNICEF, Amnesty International, and the Starlight Starbright Children's Foundation. Imagine you're at a benefit concert to help combat global hunger. Bono is on stage and asks you to send a donation now using your cell phone. You pull out your phone and send a PayPal mobile payment, right there from the audience. Tens of thousands of dollars are raised on-the-spot—thanks to PayPal Mobile. It allows charity organizations to collect money at charity concerts, sporting events, or fundraisers. “It's like passing the virtual hat – it's like Text to Give enables potential donors to send money on the spot, when they're most compelled to give,” said Jordan.

The PayPal Mobile team is confident that consumers are now ready for anytime, anywhere shopping, Jordan said, adding “No matter where customers make purchases – in a store, online, or using their mobile phones – they will continue to demand safe, convenient payment methods – that's where PayPal Mobile comes in. It's a great example of an extremely innovative product that continues our heritage of revolutionizing payments!”

---