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PayPal reinvents the mobile payment space with new iPhone app

PayPal now provides an online checkout solution designed for digital goods. PayPal for Digital Goods allows consumers to check out in as little as two clicks without being forced to leave their gaming, video, news, music or any other digital experience mid-session.

Facebook and FT.com are using PayPal to monetize the growing opportunity in digital goods.

PayPal also announced that it now provides an online checkout solution for physical goods without having to leave a merchant’s app or website. Consumers can create a PayPal account, view payments details, choose a shipping address and approve the payment without being redirected to PayPal, creating a better customer experience and increased customer retention for developers.

“The convergence of mobile, social networking, and location-based technology is creating tremendous opportunity for developers today,” said Osama Bedier, vice president of platform, mobile and new ventures for PayPal. “It’s like the gold rush of the dot-com era, only bigger and smarter. PayPal X is all about helping developers monetize the opportunity, and that’s what Innovate 2010 is all about.”

One of the most significant announcements from Innovate is PayPal’s new functionality and enhancements to PayPal for Mobile 3.0, its latest iPhone app with location-based features.

PayPal’s location-based features are a major step forward and beat Google Checkout to the punch. Through PayPal’s updated iPhone app, users can find a brick and mortar businesses in their area that accept PayPal. From there they can buy through PayPal and pick up the goods in person. Merchants taking advantage of this can target special offers to PayPal customers to entice them to buy, thereby driving business to the store. Money goes into the merchant’s PayPal account, and standard transaction rates apply.