According to Mobile Payments Today, Paypal is testing a NFC payment system in Stockholm at two retailers, Alpingaraget and Webhallen. The new app, called PayPal Instore, uses NFC stickers affixed to smartphones to enable purchases. After downloading the app, customers just need to swipe their phone over the terminal to display and confirm the purchase.
The CEO of PayPal's parent company, Ebay, is famous for having said "NFC stands for 'Not For Commerce,'" and NFC was not discussed at PayPal's offline strategy released last month. Still, this pilot program shows that PayPal is at least curious about implementing a system.
The Near Field Communication stickers are available at the retailers.