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PayPal (PYPL) Boosts QR Codes Reach With United Partnership

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PayPal PYPL is gaining strong customer momentum on the back of its robust technology-driven payment solutions portfolio.

This is evident from its latest partnership with United, under which PayPal QR Code will be made available as a payment option for passengers on boarding flights of the latter.

Notably, passengers will be able to make inflight purchases of snacks, drinks and other items by scanning a QR code in their PayPal apps, irrespective of Wi-Fi availability, thus, availing touch-free payment experience on board.

They need to download the PayPal app and set the preferred payment option as QR code payments before leaving the gate. To make purchases onboard, they need to click on the ‘Pay with QR codes’ button and then the ‘In-flight Purchase & rsquo button.

After this, passengers can show the QR code to flight attendants for scanning purposes.

The service is going to start from November 2021 on select flights of United, departing from Chicago O’ Hare International Airport. Further, it is expected to be rolled out system-wide before the year ends.

PayPal to Benefit

We note that the underlined partnership strengthens PayPal’s client base.

It is likely to bolster the adoption rate of the PayPal app and PayPal QR Code amid the pandemic, in which contactless payments are gaining strong steam.

Intensifying fear of contracting COVID-19 along with the imposition of social-distancing and stay-at-home mandates across the world has triggered contactless transactions.

Digital wallets have become mainstream, while cash and physical debit/credit cards have taken the backseat amid the pandemic.

Further, the QR code payment system has become a game-changer in the digital payment industry. A spike in payment transactions by scanning QR codes at offline stores remains noteworthy.

Hence, PayPal is expected to gain further traction in the given scenario on the back of its United partnership. This, in turn, will up its game against other technology companies like Square SQ, Alphabet’s GOOGL Google, Apple and Amazon AMZN, which are also gaining solid momentum by offering cashless and touch-free methods of payment.

Wrapping Up

PayPal’s robust solutions have been enabling it to maintain a deep and trusted relationship with merchants and consumers.

The company’s deepening focus toward the expansion of its solutions portfolio is acting as a catalyst behind its top-line growth, owing to the increasing demand for cashless payments and mobile-commerce services worldwide.

Its two-sided platform enables it to develop and maintain direct financial relationships with both customers and merchants. The platform connects consumers and merchants, facilitating unique end-to-end payment experiences to both parties.

We believe that strong product offerings along with a user-friendly payment platform will continue to aid PayPal in winning partnerships with clients in the days ahead.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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