22 aug st online pay_pal eyes slice of physical payment pie
PayPal eyes slice of physical payment pie
Latest tie-up with restaurant features mobile app to buy meals in advance
A screengrab of the Perx app that will allow Salad Stop! customers to order and pay in advance. --
By Irene Tham Technology Correspondent
ONLINE payment giant PayPal is taking a third crack at Singapore's brick-and-mortar business,
hoping that its partnership with a salad restaurant and a digital loyalty card firm will open up new
Client : PayPal Country : Singapore
Publication : The Straits Times Section : Singapore
Date : 22 August 2013 Page : N/A
Topic : PayPal eyes slice of physical payment pie
Circulation : 219, 960
Link : http://www.straitstimes.com/premium/singapore/story/paypal-eyes-slice-physical-
From next month, customers at Salad Stop!'s Capital Tower outlet can use the loyalty-card app Perx
on their smartphones to order and pay for meals, via PayPal or credit cards, in advance.
There will be a separate queue for those picking up their pre-ordered meals. Customers just need to
show their purchase confirmation e-mail.
By the first quarter of next year, the chain's remaining 12 outlets - which are mostly in the Central
Business District - will come on board, Mr Adrien Desbaillets, Salad Stop! co-founder, told The Straits
This is PayPal's third foray into the brick-and-mortar payment business, as it tries to cut itself a slice
of the pie.
PayPal has estimated the global offline market to be 10 times bigger than the US$1 trillion (S$1.3
trillion) e-commerce world. In Singapore, e-commerce spending has been topping $1 billion yearly.
The advantage of using PayPal, which posted US$5.6 billion in revenue last year, is that consumers
do not need to enter credit card details for every purchase, making it more convenient.
Last February, the US-based company, a subsidiary of auction site eBay, worked with train operator
SMRT to allow commuters to buy goods at a discount when they responded to certain
advertisements at 15 train stations.
Commuters had to first download a PayPal app to scan a QR code on the advertisement to get the
discount. Payment was made through the app using PayPal. The project was discontinued after two
Then last May, PayPal teamed up with local e-loyalty programme firm Taggo to allow shoppers at
EpiCentre's Wheelock Place outlet to pay for selected products using their PayPal accounts. Users
had to first register their mobile numbers on a special app on EpiCentre's Facebook page. The
project was discontinued after three months.
A PayPal spokesman explained that the two projects were just for "testing ideas". But The Straits
Times understands that their take-up rate was low.
Telecom analyst Clement Teo from research firm Forrester said PayPal's latest project may work for
some busy executives in the central business district.
"The Salad Stop!-Perx programme guarantees you a free wrap after a certain number of purchases
while letting you cut the queue," he said.
Even so, frequent Salad Stop! customer Tim Rice, 33, thinks that downloading the app and having to
pre-order by an hour is too much of a "hassle".
"I don't plan lunch. I can't really see myself doing that," said the manager at a financial institution.