AllThingsD » purchasing

PayPal's In-Store Payments System Hits Home Depot Stores Across U.S.

Lauren Goode — Tue, 28 Feb 2012 19:18:07 +0000

Following a test phase in which PayPal allowed its employees to purchase items at a handful of Home Depot stores using a PayPal credit card or account number, the eBay-owned payments giant is rolling out the new payments system in 2,000 Home Depot locations across the U.S. The move comes as competing companies and start-ups are aggressively exploring more mobile and in-store payment options.

Within the next two weeks, PayPal said in a post on the PayPal Blog, every Home Depot in the U.S. will be equipped to accept payments from customers using a PayPal card or mobile phone number and PIN combination.

Yesterday, at Mobile World Congress in Barcelona, PayPal also said it was increasing its efforts in the area of carrier payments, calling for wireless carriers to “revise standards to help optimize user experience, increase flexibility of carrier payments as a payment method, and increase payout rates for merchants.” The statement comes after Boku — which directly competes with PayPal’s recently acquired Zong — introduced a white-label service for in-store payments with wireless feature phones and smartphones, through a partnership with MasterCard.

In recent weeks, PayPal’s in-store payments system at Home Depot stores has come under fire from Visa, which is working on its own digital wallet service, called V.me. Visa’s global head of product, Jim McCarthy, said that PayPal’s system poses security risks, and that thieves could potentially see a paying customer’s account number as they enter it in at a payment terminal.

PayPal responded by reiterating its commitment to innovating point-of-sale purchasing, and said users’ data is more secure in PayPal’s cloud than it is in their pockets.

June 30 Deadline for Apple Subscriptions

John Paczkowski — Tue, 15 Feb 2011 15:30:46 +0000

Apple’s new subscription plan has a compliance deadline. June 30, according to a memo sent to publishers earlier this year. “For existing apps already in the App Store, we are providing a grace period to bring your app into compliance with this guideline,” it reads. “To ensure your app remains on the App Store, please submit an update that uses the In App Purchase API for purchasing content, by June 30, 2011.”

That leaves legacy apps like Hulu Plus, Netflix, Amazon, Rhapsody and others a little over four months to implement an in-app purchasing mechanism–assuming they can come to terms with the thought of handing Apple a 30 percent cut on subscriptions.

Reached for comment, Hulu declined to give one. Netflix and the others haven’t yet responded to our requests.

Google Turns Its Local Eyes to Groupon–But Who Else Could Enter Bidding?

Kara Swisher — Fri, 19 Nov 2010 08:38:06 +0000

According to multiple sources close to the situation, Google is in discussions with local deals powerhouse Groupon about buying it.

Without making the requisite joke about the deal of the day, sources said the price being considered is certainly no discount–well above the $2 billion to $3 billion that Yahoo offered Groupon in acquisition talks that took place earlier this year.

But sources cautioned that the talks are not complete, and could also end up without any result, as the Yahoo discussions did.

In an email, a Google spokesperson said with some style: “Per usual, we don’t comment on rumor or speculation. If we did we’d be busy 24/7!”

A Groupon spokesperson was also sassy, noting: “Thanks for the heads-up!”

Still, the company appears to be engaged in a pattern of shopping itself around, via its bankers Allen & Co., even though Groupon investors have expressed a desire to stay independent many times.

But could there be other interested parties poking around, given the explosive revenue growth of Groupon–whose revenues are reportedly upward of $50 million a month–in the huge local retail market?

Sources said only three could pay such a high price: Microsoft, Amazon and, perhaps the most logical buyer, eBay.

Facebook is another company that could be interested, of course, although this would be a sizable purchase in both cost and also staff for the social networking giant, which has fewer employees than Groupon.

As does Google, all–except perhaps Facebook, which is not public yet–have more than enough cash reserves, as well as stock, to pay up for one of the more promising start-ups in a lucrative arena.

That would be local commerce. Currently, despite a plethora of clones, Groupon dominates socially fueled couponing across cities globally.

Owning the hot space around local purchasing and consumer information, combined with the social element, would be a tasty treat for Google.

The Silicon Valley search giant has struggled to deliver social tools to users, even as Facebook has morphed into a potent rival.

Google had looked at social reviews site Yelp for purchase previously, but that deal fell apart.

It has been introducing various local advertising and commerce efforts, efforts that would be turbocharged given Groupon’s quick progress.

In April, Groupon garnered a valuation of well above $1 billion in a massive venture funding.

It has used that money to buy up companies in the U.S. and internationally, trying to solidify itself as the major player in the marketplace.

If Google were to complete a deal to buy Groupon, it would have echoes of its purchase of YouTube in 2006 for $1.6 billion.

Many felt it a high price at the time, but it looks cheap today given how the site almost completely dominates Web video.

A purchase this size would also likely require bankers. Google’s favored one is Morgan Stanley.

But there is one major issue in a possible Google purchase of Groupon: Even more regulatory scrutiny by the federal government over its power online.

Google narrowly missed getting approval for its $750 million purchase of mobile advertising start-up AdMob.

And it is currently under fire from numerous critics for its proposed purchase of huge flight data firm ITA Software for $700 million.

Those opposed to the acquisition, on antitrust grounds, contend that Google would control travel search in a way that would invite abuse.

Having Groupon would garner Google even more powerful pricing information from both customers and merchants across the globe.

Stay tuned, but check out this video interview I did with Groupon founder and CEO Andrew Mason this summer in Vancouver, where I asked him specifically about Google’s interest (actually, I suggested he mug Google co-founder Larry Page):

[ See post to watch video ]

Please see this disclosure related to me and Google.

Shopkick Checks In With Target–CEO Cyriac Roeding Talks About Social Shopping

Kara Swisher — Tue, 16 Nov 2010 18:28:13 +0000

The idea of being rewarded for being a consumer is getting a lot of heat of late, as retailers seek to take advantage of the fast-moving social phenom among consumers, especially young ones.

Thus, a wide range of efforts to combine location-based mobile apps with purchasing, both online and offline.

Earlier this week, BoomTown posted on a funding for one such start-up, Topguest, which links check-ins with airline and hotel loyalty programs.

Today, another company in the space, shopkick, announced it had added another store–Minneapolis-based Target–to its list of retailers deploying its platform and mobile app.

As with customers of Macy’s, Best Buy and others, users of the shopkick app will receive points and other rewards, as well as instant mobile coupons, just for walking in the store.

The point being: Retailers need to reward foot traffic and not just purchases.

The Target partnership is limited now to 242 stores in the Chicago, Dallas, Los Angeles, Miami, Minneapolis, New York City and the San Francisco area.

Target will also offer scannable mobile coupons to customers for redemption at checkout.

It will be interesting to see how effective apps such as shopkick are as they roll out, as consumers test them.

Unlike others that offer quick deals–from Foursquare to Facebook to, now, Yahoo–shopkick uses its “kickbucks” as an enticement simply for being present in a store or scanning certain barcodes.

It’s certainly easy enough–my son, Louie, did it with ease and definite enjoyment–although a user does need to remember to fire up the app when entering a participating store.

There is also a small device retailers need to install need to make the shopkick ecosystem work.

CEO Cyriac Roeding, a former EVP for CBS’ mobile unit, created the concept for the Menlo Park, Calif.-based start-up while an entrepreneur-in-residence at Kleiner Perkins.

The company has raised $20 million in venture funding from Kleiner’s iFund, longtime Silicon Valley investor Reid Hoffman, as well as Hoffman’s home at Greylock Partners.

Here is a video interview I did with Roeding about where shopkick is going next:

[ See post to watch video ]

Yahoo's M&A Strategy–Maybe Local Commerce Rather Than Content (Hello, Groupon!)

Kara Swisher — Fri, 08 Oct 2010 17:08:07 +0000

It’s no secret in Silicon Valley dealmaking circles that Yahoo has been looking at what insiders have called a “transformative” acquisition to jumpstart the company.

And while many think that has to mean grabbing one of the big content companies–such as AOL (AOL) or Demand Media–right in Yahoo’s wheelhouse, sources said it is actually training its attention on, drum roll, commerce.

That would be local commerce, most specifically, innovative companies such as the hot start-up Groupon, which dominates social couponing across cities globally.

Sources said Yahoo (YHOO) has been eyeing it for possible acquisition, which would put it smack dab in the hot space around local purchasing and consumer information.

Such a deal is far from done, and Groupon investors have expressed a desire to stay independent many times.

In any case, it is an interesting shift for Yahoo, which–after a lot of executive turmoil–could use something interesting right about now.

The Internet giant, as well as Google (GOOG), had looked at social reviews site Yelp for purchase previously, and everyone is watching Groupon’s quick progress.

Sources close to the situation said that Yahoo execs involved in the strategy think of such efforts as content, providing its users with relevancy and also definite benefits.

In addition, these kinds of sites are profitable and increasing in revenue–think accretive!–and also fast-growing, which Yahoo desperately needs.

They’re also expensive, with Groupon recently garnering a valuation of well above $1 billion in a massive venture funding.

That means Yahoo might have to pay much more, up to $2 billion. It certainly has more than enough cash on hand and, of course, has its moribund stock. Yahoo has a market cap of $19.5 billion.

Groupon has been buying up companies in the U.S. and internationally with that cash, trying to solidify itself as the dominant player.

Such a move would be bold for Yahoo, which it has lacked in its merger and acquisition strategies over the years, as others like Google have bought big properties such as YouTube.

Yahoo almost bought the massive online video site, as well as Facebook, many years ago.

It also tried, and failed, to buy Foursquare, the social check-in start-up, recently.

Microsoft Sweeps 2009 Patent Infringement Awards

John Paczkowski — Thu, 21 May 2009 20:22:32 +0000

[ See post to watch video ]