PayPal have had a major win with their payment service now offered by Argos on argos.co.uk. That means that 26 million UK PayPal accounts can now be used in the UK high street’s online shop in time for the arrival of 5,000 new catalogue product lines due to be added with the release of the 75th Argos catalogue this weekend.
By accepting PayPal payments, Argos believes it can gain incremental sales from PayPal customers and in truth I’m probably one of those customers. I do shop at Argos, and I’d much prefer to use my PayPal balance rather than spend “real” cash from my bank account.
Argos already have plenty of experience of being a PayPal merchant through their Argos Clearance Bargains eBay account. Since setting up on eBay in 2007 PayPal have already processed over 750,000 for Argos on eBay so adding it as a payment option on their website makes perfect sense.
PayPal continues to be the jewel in eBay’s portfolio of products consistently turning in quarterly financial results which have kept investors interested in eBay even though the marketplace business has suffered in recent years. The reason that PayPal is so successful is the growth of their non-eBay business and Argos is a prime example of where PayPal can increase their market share.