PayPal in tie-up with Oasis owner

PayPal is partnering with womenswear high street chains Coast, Oasis, Warehouse and Karen Millen to allow customers to pay for purchases in-store using their smartphones, a move that comes as concerns linger that consumers are not using the applications available to make contactless payments.


The PayPal InStore app, which launches tomorrow (31 May) on iPhones and Android devices, allows shoppers to use their Paypal accounts to make purchases at 230 stores across the UK.

The app issues a unique barcode and transcode number that shop assistants then scan to take money directly from an account. Refunds and discounts are also managed via the app.

No financial or personal information is stored on the app, PayPal insists the move will address concerns that contactless payments are not secure enough yet to become a popular way of purchasing goods.

Cameron McLean, managing director of PayPal UK, says the “secure” method of paying marks the start of a “quiet revolution” in the way people shop on the High Street.

He adds: “The lines between the online world and high street will soon disappear altogether: research we carried out last year amongst major retailers suggested that 2016 will be the year you won’t need a wallet to shop on the British high street. A phone will be enough.

Ish Patel, group omnichannel director at Aurora Fashions, says the smartphone deal marks the latest step in the fashion group’s bid to offer a multichannel journey to consumers.

UK retailers John Lewis and Argos are already PayPal partners, but they are not using the in-store app as yet.

The launch is expected to build on the $4bn (£2.6bn) in global mobile payments PayPal handled in 2011 and almost double to $7bn (£4.5bn) this year, according to the online business.

The deal comes as research from revealed that 60% of British adults would avoid making mobile payments. The poll of 2,000 participants identified that security concerns (36%) were the most common reason for avoiding mobile payments.

PayPal also took a swipe at NFC technology, with McLean saying it wasn’t important for mobile payments to succeed.

There are only a handful of mobile operators offering NFC-enabled devices and only a limited number of retailers such as Waitrose and McDonald’s hosting terminals in the UK. Both Blackberry and Samsung have launched services on their devices in recent months to accelerate the uptake.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email

If you are looking for our Jobs site, please click here