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. --

PHOTO: PAYPAL

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

revenue streams.

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-

payment-pie-20130822

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

Times.

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

months.

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.

itham@sph.com.sg