PayPal mobile transactions have increased nearly six-fold from $25 million in 2008 to $141 million in 2009, leaving this new application to raise the bar. The application launched March 15 in the Apple App Store with the ability to split checks, collect money for events, donate to charities, manage PayPal accounts and bump money transfers.

“PayPal’s strategy behind the mobile application is to take the security, convenience and great user experience of PayPal online and make it even better on mobile devices,” said Osama Bedier, vice president of platform and emerging technology at PayPal, San Jose, CA. 

“This gives users everything they’ve come to expect from PayPal with the added benefit of access to their money anywhere, with the funding source of their choice, via their mobile phones,” he said.

No more ATM
PayPal is relying on the ABI Research study that predicts people will spend $119 billion through their mobile phones by 2015.

“We announced the new PayPal Mobile for iPhone app through several different channels of traditional and social media, including Twitter and Facebook,” Mr. Bedier said.

PayPal Mobile supports 15 different languages and includes a global currency calculator.

Security is also a big draw to PayPal with a password required for every mobile transaction to avoid any unauthorized use.

“Removing key friction points such as security concerns and poor user experience will allow mobile commerce to flourish, Mr. Bedier said. “PayPal is working to bring the best mobile commerce experience to both consumers and merchants alike.”

In addition to PayPal, credit card companies such as MasterCard, Visa and Discover have also launched mobile payment platforms.

Payment companies are predicting that mobile phones will be the device of choice for a consumer to consolidate all important aspects of financial services with balance alerts or statements without having to access their PC or wait for the mail to be delivered.

EBay Mobile has now become the biggest mobile commerce entity with $600 million-worth business transacted last year over its iPhone application and WAP site.

Here is a screen grab of the application:

Universal banking
The PayPal service allows members to send money and get paid though online services without sharing financial information.

PayPal currently has 81 million active accounts in 190 markets and 24 currencies.

“PayPal is at the forefront of changing the way we pay, and this mobile application is one example,” Mr. Bedier said. 

“Our vision is that in the future, consumers will pay for gas from their bank account, dry cleaning from their debit card and tickets from their PayPal balance – all from the same mobile phone and with just a few clicks,” he said. “All these will happen as the friction points to secure payments are removed.”

Of the PayPal global payment services, the two other leading payment services are Payflow Gateway and Bill Me Later. The company also has built payment applications on multiple platforms and devices through open payment platform PayPalX. 

“Mcommerce is finally here and growing exponentially,” Mr. Bedier said. 

“The future of money is mobile: the wallet you carry in your pocket today will be in the cloud tomorrow and mobile devices are how you’ll access it. With the PayPal Mobile for iPhone app, the mcommerce generation now has a tool to help them access the wallet in the cloud,” he said.