Vodafone and PayPal have teamed up to allow UK customers to make contactless payments in shops, restaurants and on transport services with their Android smartphones, funded from their PayPal accounts.

As of yesterday, customers can now link their PayPal account to Vodafone Pay to purchase goods and services simply by tapping their smartphone at more than 400,000 locations across the UK that accept contactless payments.

Vodafone Pay customers will also be able to use the service to pay to travel across the Transport for London (TfL) network as well as on National Rail services in and around London that accept Contactless and Oyster.

In order to keep track of payments, a notification is sent immediately to the cardholder, confirming that the transaction has been successful. The application also has a specific section showing transaction history, with details of the purchase, the place and the date including pending transactions. This information is available within the dedicated section of the app, and PayPal transactions are also logged in the customer’s PayPal account.

Vodafone Pay can even be used to make a payment when the phone is switched off or out of battery life because the contactless SIM can connect automatically to a contactless terminal to complete the transaction.

Kate Wright, Vodafone UK’s head of consumer services, said: “Our customers told us that being able to use PayPal when making mobile payments was important to them so we’re delighted to now offer this on Vodafone Pay. The service also works with any Visa and Mastercard credit or debit card offering customers greater choice than any other mobile payment service.”

As part of the agreement, anyone who does not have a PayPal account will be able to sign up for one directly from within Vodafone Pay.

Rob Harper, director of mobile commerce at PayPal UK, added: “Money is going digital, and the smartphone is at the centre of this transformation. Mobile payments have long been at the heart of what we do.

“In fact, this year marks 10 years since we first launched a mobile payment service in the UK. As mobile technology continues to evolve, we will continue to look at new ways to make it easier and faster for our customers to pay.”

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