PayPal Testing NFC-Powered 'Instore' App in Sweden

PayPal has begun trials of a Near-Field Communications (NFC) based mobile payment service in Sweden under the name PayPal Instore.

According to MobilePaymentsToday, the company's newly-launched app will key in on NFC-based stickers distributed via sporting goods retailer Alpingaraget and electronics store Webhallen in Stockholm, allowing Android and iOS devices to scan tags and pay for their purchases using their smarpthones.

Speaking to the site, PayPal's head of consumer engagement marketing in Northern, Central and Eastern Europe, Catrine Rhenberg, claimed that customers will be show how to attach the NFC short-range radio stickers to their smartphones and associate it with their PayPal accounts.

As an incentive, those taking part in the trial will also be offered discounts on selected products when they pay via the PayPal Instore app.

To facilitate the trial, PayPal has teamed up with Sweden-based Accumulate for the mobile payment system and VeriFone-owned Point AB for the payment gateway system.