Skype has just introduced a new update to its App that makes sending and receiving money easy. Skype is an instant messaging app that provides online text message and video chat services. Users may transmit both text and video messages and may exchange digital documents such as images, text, and video. Skype allows video conference calls. It is owned by Microsoft.
Consumers using the video-chatting and messaging service Skype will be able to send money to the person they are speaking with, through PayPal, starting Wednesday. They will not have to leave the Skype app to do that. PayPal and Skype’s partnership will be available in 22 countries including the U.S., U.K., Canada, Finland, France, Germany, Italy and Spain.
Mobile peer-to-peer payments are forecast to exceed $65 billion by 2021, up from $14.9 billion in 2015, according to mobile payments forecast data from Forrester, a market-research company. Venmo processed $8 billion in transactions in the second quarter of 2017, up from $6.8 billion in the first quarter. It is currently only available in the U.S.
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Consumers are getting more comfortable with payment apps. People don’t want to fumble with credit card numbers and security codes. They’re less willing to type their credit-card details into an online form than they were even five years ago, said Bill Ready, PayPal’s chief operating officer. “Now everyone has experienced seamless transactions, everyone’s had an Uber ride, or had a PayPal one-touch transaction,” he said. “Expectations are changing significantly.”
For PayPal, the integration is just the latest in a long series of partnerships aimed at expanding the company’s ecosystem giving its mobile wallet more exposure for direct checkout. PayPal’s Skype deal is nearly identical to one that it has with Slack, which allows Slack users to send and receive money without ever leaving the messaging app.
PayPal recently announced an expanded relationship with Apple that will make PayPal a payment option for App Store purchases. The payments giant also has deals with Visa and MasterCard, Citi, FIS, and Facebook, as well as tie-ins to Android Pay, Samsung Pay and Baidu.
PayPal’s partnership motives also reflect an increase in P2P payments. The company’s social payments platform Venmo processed $8 billion in total payment volume over the second quarter, up 103 percent from the same period last year.
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As for Skype, its parent company Microsoft has been working to expand the service beyond its traditional video-calling features. Microsoft rolled out an update to Skype in June that aimed to make the app appeal to the Messenger, WhatsApp, and Snapchat user base, but the redesign fell flat on Skype loyalists. Microsoft ended up issuing another update that restored core features including status display for contacts on the home screen, and the ability to share content from other apps within Skype chats.