Last week, CVS Pharmacy announced it would become the first retailer in the US to allow consumers to pay with PayPal or Venmo at its checkouts.
In light of the pandemic, consumers are looking for payment options that avoid touching a keypad or signing a receipt. This deal will integrate digital pay services, giving shoppers an alternative to traditional payment methods.
How will it work?
The new digital payment service will be similar to Apple Pay or Google Pay. Consumers will be able to download PayPal or Venmo app on their phones.
For the PayPal app, once installed, they will have the option to pay by scanning a QR code that’s connected to their stored debit or credit card, Paypal balance, PayPal credit, or bank account if the account is linked to PayPal.
Venmo users can use the service in a similar way. The app will allow them to scan a QR code and pay using their stored debit or credit card, linked bank account, or the Venmo balance or Venmo rewards.
Additionally, PayPal says it won’t charge any fees to consumers if they pay using the PayPal or Venmo app on their phone.
The codes will be rolled out at all CVS Pharmacy chains – of which there are around 8,200 in total. PayPal plans to do this by the fourth quarter of 2020.
What are the benefits?
In the current health crisis, being able to avoid touching card readers is a huge benefit to consumers.
In a statement, Mark Britto, Executive Vice President and Chief Product Officer at PayPal said, “In the midst of COVID-19, we have seen an incredible acceleration of digital payments and touch-free payments. Companies of all types and sizes are looking for ways to maintain the safety of their customers and employees, especially through touch-free experiences like curbside pickup and enhanced online shopping.”
He added, “QR codes complement these and provide retailers an additional payment method that furthers this touch-free mission and continues the growth of digital payments for all partners in the ecosystem.”
Jon Roberts, Executive Vice President and Chief Operating Officer of CVS Health added, “PayPal and Venmo QR codes offer our customers a secure and touch-free way to complete their purchase with a payment brand they know and trust. This reflects our continued focus on innovation and finding new ways to help maintain the safety of our customers and employees.”