Mobile credit card system PayPal Here was given a big boost on Friday when eBay CEO John Donahoe announced the sale of the company’s credit card system at 1,800 AT&T Wireless stores throughout the United States. Previously, PayPal only had an international retail deal in place throughout Japan mobile carrier Softbank.
PayPal Here was announced earlier this year but has faced an uphill battle against mobile payments competitor Square.
Customers can purchase a PayPal Here adapter at AT&T Wireless stores for $15. The device ends up being free after customers receive a $15 credit for its use.
PayPal Here customers can take payments using a mobile phone adapter and mobile app.
The company is currently playing catch up against Square, a product that has been selling since the first half of 2011. Square currently offers device sales in more than 20,000 outlets throughout the United States including AT&T, Walgreens, Staples, FedEx Office, Apple, Wal-Mart, Best Buy, RadioShack, and Target.
Square is $5 cheaper than PayPal Here, and the company offers a $10 credit to customers who go on to use the product for customer purchases.
Donahoe has also announced that PayPal is currently looking into new ways to explore merchant specific balances for its in-store payments product. The PayPal in store product was beta tested at Home Depot, Jamba Juice, and several other national retailers. Among in-store options would be the ability for PayPal to offer customers a specific PayPal balance display after they make a payment.
With the holiday shopping season heating up, AT&T Wireless and PayPal Here couldn’t have launched the payment platform partnership at a better time.