PayPal adjusting strategy, needs to close the gap in mobile payments

Google, Apple and other companies want to grab control of the mobile payments market, and there is suddenly a lot of competition. PayPal, which is preparing to spin off from eBay, is looking for options in an evolving mobile payments system - and could push its own mobile wallet while working on it increasing its own payment infrastructure.

PayPal has worked on digital wallets, mobile payments and its own point-of-sale (POS) terminal for years, but must adapt to changing times. The company powers transactions for Airbnb, Uber, Houzz and others, working relatively quietly and out of the public spotlight.

"While other vendors need to gain consumers' trust, PayPal needs to come first of mind when it comes to mobile, as I do not think your average users naturally think of them," said Carolina Milanesi, chief of research at Kantar Worldpanel, in a statement published by The Street.