PayPal Extends its Reach
Starting Tuesday, U.S. consumer will be able to use their PayPal accounts to purchase items online from websites that do not accept PayPal payments. The new system, PayPal Secure Card, issues a one-time MasterCard number to use for the transaction. The user clicks a downloaded button on their browser to generate the number and complete the transaction.
"From a merchant's perspective this looks like any other MasterCard transaction," said Chris George, director of financial products for PayPal. "And it's just another PayPal purchase to the customer."Stored PayPal information makes the transaction faster and easier by automatically filling in the details needed to make the transaction. PayPal sees this as a way to decrease phishing by reducing the need for consumers to continually enter personal and financial information on websites they may not be familiar with. PayPal saw a 34 percent increase in overall transaction volume over the third quarter of 2007 - good for $12.22 billion.