Microsoft has partnered with Paypal to allow users to send peer-to-peer payments using its instant messaging application Skype. The partnership will work in 22 countries, including the United Kingdom, United States, Canada, Germany, France and a host of other European countries.
The mobile payment market has grown significantly in recent years, with peer-to-peer payments, A2P and P2A messaging all on the rise. The growth in mobile banking application, ability to receive messages without data connection and the rapid increase in mobile subscriber base are some of the driving forces behind this trend, according to a .
This is the latest in a series of moves from PayPal as it looks to get a stronger foothold in the mobile payment market. This is becoming a very competitive market, with the latest forecasts expecting growth at a CAGR of around 38.9% over the next decade to reach approximately $405 billion by 2025. PayPal has already announced integrations with Samsung Pay, Android Pay and Baidu, and extended its partnership agreements with Citi and Chase. But the Skype deal gives it access to the messaging service’s sizable user base. According to Microsoft, the Skype app has been downloaded over a billion times to date and has approximately 300 million monthly active users.
The company says the ability to send money through Skype will roll out today on iOS and Android. TechCrunch explains where to find the feature when you receive the update:
“Select ‘Find’ on the top bar while in conversation with a friend or family member, and choose the ‘Send Money’ add-in. You just type in the amount to send, confirm the payment, and hit send to complete the transaction.”
There are a few interesting things to note:
- The feature is designed for sending money to friends or family, not for paying for good and service. At least for the moment.
- Rates do apply. Sending money is free when you use your PayPal balance or a debit card, but you will charged if you are using a credit card. The fee is said to be 3.4 percent of the transaction amount plus $0.30.
The full list of supported markets includes: the U.S., the U.K., Austria, Belgium, Canada, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, Netherlands, Portugal, San Marino, Slovakia, Slovenia and Spain.
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