Paying with PayPal at Home Depot Just Got a Lot Easier

"No cash, check, card, or phone needed."

That's how eBay  (NASDAQ: EBAY  ) subsidiary PayPal describes its payment deal with Home Depot  (NYSE: HD  ) . And it's no joke: Once you set up your PayPal account to use at stores, a phone number and pin is all that's needed to get your duct tape, fancy new grill, or any of the other thousands of SKUs at Home Depot.

According to Jason Oxman, the CEO of the Electronic Transactions Association, PayPal is a paragon of the rising alternative payment technologies. It's an established company, but it's also clearly an innovator. 

In this interview clip from the Transact 14 conference, Oxman explains what makes PayPal so great, and why consumers can feel so comfortable going to Home Depot -- or anywhere else that accepts PayPal -- and using PayPal to complete their transaction.

A transcript follows the video.

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Matt Koppenheffer: When you hear "alternative payment technologies," does something like PayPal fit into there, or is it some gray area in between?

Jason Oxman: PayPal is a great example of a true innovator in the payments space. They have been around for a long time. They're not a new company. They've been around for more than a decade, and they have just brought an incredible amount of innovation; first online, then to mobile, even into the retail space today.

Whenever I go to Home Depot, I pay with PayPal, because I can do it right by entering my phone number.

Koppenheffer: You can do that on Uber now.

Oxman: You know what it is? It's a hands-free mobile payment. I can just type in my phone number -- I don't even need to pull out my phone in order to pay at the point of sale with PayPal.

So, an enormously innovative -- and disruptively innovative; they are really changing the way payments are made in this country, and I think PayPal is a great example of that. I think of PayPal as -- and I think it's great to think of them as -- an alternative provider, because they are so disruptive.

But at the same time, when you make a PayPal transaction, you've got the guarantee behind you of not only PayPal itself, which makes some guarantees to protect consumers and merchants, but also if your PayPal account is attached to your credit card -- it's funded by a credit card -- you've got all the protections of the credit card network as well, so there are a lot of layers of protection there.

Again, we can call that "alternative," because it's a new technology and it's very cool what they're doing, but it's still important to remember that those protections need to be there for consumers.


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  • Report this Comment On May 21, 2014, at 11:54 AM, pondee619 wrote:

    "It's a hands-free mobile payment. I can just type in my phone number."

    hands-free? You just type with your nose/foot?

    So, I guess that it is good to know that the next time I drive to HomeDepot without my wallet (and hence my DL)I can still spend money. Swipe a card or put in my phone # and PIN= six of one half dozen of the other. Big Whoop

  • Report this Comment On May 22, 2014, at 12:21 PM, PhilipCohen wrote:

    Wot? More disingenuous nonsense piped direct from the eBay Dept of Spin, no doubt ...

    "Whenever I go to Home Depot, I pay with PayPal, because I can do it right by entering my phone number."—LOL

    Funny, but I find it much easier to flash my NFC credit card ...

    [Next time you visits The Home Depot, ask the cashier how "Pay Here With PayPal" is going - LOL ...]

    PayPal: “The [un]safe way to pay and be paid” …

    “How to complain about PayPal in the UK”

    http://www.mukaumedia.co.uk/complain-paypal-uk/

    On this article, when I last looked, 417 negative readers’ comments on “PreyPal”—well worth a read for any merchant using, or thinking of using, “PreyPal” to accept payments and who has not as yet had a problem with “PreyPal” because, when you do eventually have that problem, it could be a serious business-threatening problem …

    “PayPal: 'Aggressive changes' coming to frozen funds policy”

    http://money.cnn.com/2013/01/21/technology/paypal-frozen-fun...

    Of the 368 readers’ comments currently on this article, see if you can find any that are complimentary of “PreyPal” …

    And, just for fun, a story from Anna Tims of the Guardian/Observer detailing an apparent systems failure at “PreyPal” that undoubtedly affected who knows how many people …

    http://www.theguardian.com/money/2013/sep/01/paypal-refund-m...

    And another story from Anna Tims demonstrating eBay's unconscionable lack of fair transaction mediation and hard-wired bias towards buyers; 324 readers’ comments on this story; see if you can find any that are complimentary of eBay ...

    http://www.theguardian.com/money/2013/dec/09/seller-beware-l...

    “eBay Seller Caught in the Middle of PayPal Dispute”—ecommercebytes.com

    http://www.ecommercebytes.com/C/letters/blog.pl?/pl/2013/9/1...

    This story is the classic demonstration of just how unprofessional and “clunky” PreyPal is and always will be because “PreyPal” is little more than a credit card merchant account operator (with Wells Fargo Bank); an extra layer of clunky middleman operating in between the seller’s PayPal “pretend bank” merchant account and the buyer’s source of funds.

    And yet another interesting article in the Guardian on the lack of security and protection for sellers receiving payments via eBay’s clunky “PreyPal” (or dealing with Bitcoins); note the many negative readers’ comments about “PreyPal”.

    http://www.theguardian.com/money/2014/mar/01/paypal-bitcoin-...

    And, while we are at it, an independent view on Bitcoin …

    http://seekingalpha.com/article/2120043-bitcoin-is-sinking-f...

    “Anyone rushing out to load PayPal onto their phone might want to stop and read The New York Times Haggler column from Sunday. PayPal apparently generates a huge percentage of The Haggler’s traffic.”—Tom Groenfeldt, Forbes …

    “If PayPal isn’t the most reviled online company in the country, which is? The Haggler invites reader suggestions for this unhappy title, but before you write in, consider the sheer quantity of animosity that PayPal inspires. There are anti-PayPal Facebook sites, anti-PayPal YouTube tirades, PayPal-loathing Twitter accounts and more than 550 complaints about PayPal on ConsumerAffairs.com.”

    Yet another classic, ugly, PayPal story …

    http://www.nytimes.com/2013/10/13/your-money/stuck-in-a-disp...

    Clunkity, clunk, clunk, clunk …

    And (yet) another negative “PreyPal” story; an oldie but well worth a read …

    http://nrgfxit.net/2010/12/16/paypal-a-standard-bearer-for-t...

    “PayPal (Owned by eBay) is symptomatic of the Achilles heel of online commercial ventures today that leave users in distressed states of helplessness. An innocent trust given in good faith by a user is not reflected back by the service provider, in fact it is abused and taken advantage of.” …

    =

    And another quite typical “PreyPal” horror story, ultimately “fixed” …

    http://boards.straightdope.com/sdmb/showthread.php?t=700733

    “… I know it is child's play to get creative with a graphics program and manufacture what may apparently look like a utility bill with someone's name on it. Not that I would do such a thing which probably breaks all sorts of anti-terrorism laws and would subject the perpetrator to drone bombings and/or water-boarding. You know things have gotten out of hand when honest people have to lie just to get around the impossible [PayPal] bureaucracy.”

    “How to sue eBay or PayPal [in the U.K.]”

    http://www.thewholesaleforums.co.uk/threads/how-to-sue-ebay-...

    “Your Legal Solution To PayPal's 21-Day Hold Policy [in the U.S.]”

    https://www.paypal-community.com/t5/How-to-use-PayPal-Archiv...

    The reality is, as a merchant, if you have not yet been burnt by “PreyPal”, then your turn is coming, and being burnt by “PreyPal” can be a serious business-threatening situation. PayPal’s close association with the “wild west” eBay marketplace has destroyed any credibility “PreyPal” may ever have had with many merchants and frankly, I think that anyone that thinks that “PreyPal” now has any long term future outside of the eBay marketplace or as the merchant account provider “of last resort” for non-professional sellers, is uninformed as to just how unprofessional the clunky “PreyPal” operation really is when compared to the retail banks’ MasterCard/Visa operations and the new “MasterPass” and “V.me” digital wallet offerings …

  • Report this Comment On May 22, 2014, at 12:55 PM, PhilipCohen wrote:

    But, more material is the question, how much longer is eBay going to continue to subsidize the cost of "PreyPal" transactions at The Home Depot and elsewhere? for undoubtedly such transactions are being subsidized by eBay as The Home Depot would not be paying their bank a discount fee on their Credit Card Merchant account of anything like the ~2.9%+30c that “PreyPal” normally charges the hoi polloi ...

    eBay’s “PreyPal” operates as little more than a large Credit Card Merchant via their own retail banker; likewise Wal-Mart operates a Credit Card Merchant account via their retail banker; who would be transacting the most payments? “PreyPal” or Wal-Mart? and if they are roughly equal, then the discount fee each would be paying their bankers would probably be similar; therefore, where would be the margin for a profit in such transactions for eBay? Maybe, only in the hallucinations of eBay’s Johnny Ho—LOL …

    Next time you visit The Home Depot, ask the cashier how "Pay Here With PayPal" is going—LOL …

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