PayPal goes mobile, putting secure payment in your pocket

More shoppers today are reaching for their phones instead of a credit card thanks to a trusted player in electronic commerce -- PayPal.

Many of you already use PayPal to complete financial transactions online while protecting personal banking information.

The mobile version of this process has been used in other parts of the world for more than two years and is now growing in the United States, said Eric Duprat, PayPal's mobile payment division manager.

"The phone has become an essential part of your life," Duprat said during an interview at the recent CTIA Wireless convention in Las Vegas. "It's a lifestyle device."

PayPal Mobile (www.paypal.com/mobile) is the No. 1 method for mobile payments in the United Kingdom and has climbed to No. 2 in the United States, behind Visa.

PayPal was started in December 1998 and is now used in 190 countries. It was acquired by eBay in 2002. PayPal Mobile launched in 2006, and although the company doesn't release usage details, Duprat said mobile use grew by 400 percent in 2008.

"PayPal has not ever been breached," Duprat said. "We've developed the safest and easiest way to pay. Nobody should enter a credit card number on the Net or a phone. PayPal is the best way to bridge the financial institutions and the Internet."

It works like this: Customers establish a PayPal account using a computer and Web browser. Users may transfer money into their PayPal account or link PayPal to a bank account. Mobile transactions are confirmed using a four-digit personal identification number or a password.

There are no fees to check balances, make payments on Web sites, to send payments to individuals or to receive money into a personal account. Fees are charged for using multiple currencies. Businesses using PayPal to receive money pay transaction fees. Your phone carrier may charge for data transfer or text messages.

It's a good idea to add these services to your mobile-phone account. You'll find more details in the frequently asked questions section of the PayPal site (www.paypal.com).

The PayPal Mobile application is now available as a free download in the BlackBerry App World. It's also available via the mobile browser on the Apple iPhone.

Some Web sites don't accept PayPal for payments, but PayPal has an answer for those looking for secure shopping -- the PayPal browser plug-in. It generates a virtual debit MasterCard number good for a single transaction.

This solution requires you to start on a computer, but the virtual card may also be used with mobile merchants.

Duprat said he believes new methods for making payments, including micropayments -- small charges for paying for digital information -- will be developed.

"It's a natural evolution."

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