The support of PayPal’s 3rd party payment method on Google’s 3rd party payment method is currently available in the US, the UK, Austria, Belgium, Canada, Finland, France, Germany, Ireland, Italy, Netherlands, and Spain.
When purchasing an Application from the Google PlayStore, the user will be prompted by a Google Wallet window. That window provides options for a standard payment card, carrier billing, coupon redemption, and now PayPal. Once selected, as with the majority of PayPal purchases, the user is requested to enter his or her password to complete the transaction. The payment itself is still processed through Google Wallet, and can be used to purchase apps, digital content such as movie and TV rentals, Google devices, and accessories.
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Along with the newly added PayPal support, Google is also pushing carrier billing for Google Play purchases. Carrier billing allows the cellphone bill itself to be charged for the content rather than a separate payment method. Application and content payments will be settled along with the carrier at the end of each payment cycle.
It’s no secret Google is trying to push more purchases in its App-Store. Google is losing out to main competitor Apple when it comes to purchase volume. Many factors lay behind why i-Devices generate more, but the main reasons are user-base and personal security.
Fragmentation and lower end cheaper devices which represent Android smartphones has proven to be a factor in Google’s app sale generation. Premium devices with a premium price tag from Apple attract users which tend to spend more. Also given that Apple provides the entire ecosystem, from hardware to software, users tend to trust the company more than others.
The addition of PayPal, and the security features behind it, may be what Android users need in order to push them to buy more in the Google PlayStore.