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Home Depot tries out PayPal

By Marcie Geffner · Bankrate.com
Monday, January 16, 2012
Posted: 9 am ET

Short of cash? Out of checks? Forgot your debit card? Maxed out your credit?

Don't worry. If you want to buy a power drill, flat of pansies, major kitchen appliance or whatever at one of five particular Home Depot stores, you'll be able to pay with -- wait for it -- PayPal.

Customers can authorizes PayPal payments by entering their cellphone number and PIN into a payment processing device similar to a debit or credit card swipe terminal.

The new payment option is part of a limited pilot program for PayPal's point-of-sale technologies. PayPal's overall plan is to introduce "one-stop shop" solutions for merchants, making payments possible via smartphones, tablets and other electronic devices, according to the company's blog.

PayPal is perhaps best known as an online person-to-person payment system, but small businesses also use the service as a routine way to accept payments from far-flung customers. The company, owned by eBay, was started in 1998 and is headquartered in San Jose, Calif. According to its website, PayPal has 103 million active accounts in 190 markets using 25 different currencies.

The locations of the five Home Depot stores participating in the PayPal program have not been released. Whether the option will be expanded to more Home Depot stores in the future also remains to be seen.

Home Depot's website, HomeDepot.com, has accepted PayPal payments since December 2010, according to the home improvement company's blog. Technically named The Home Depot, the company has 2,200 retail stores in the U.S., Canada, Mexico and China.

Follow me on Twitter: @marciegeff

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