Argos introduces PayPal as payment partner

Over 26 million UK PayPal accounts can now be used on the UK high street's leading online shop in time for the arrival of 5,000 new catalogue product lines.

As Argos stores prepare for the launch of the 75th Argos catalogue this weekend, Argos.co.uk customers now have the option of paying with PayPal. The launch of this new payment option demonstrates Argos' commitment to a market leading multi-channel strategy that aims to provide an increasing choice of reservation, delivery and payment methods for its customers.

The partnership means that PayPal now has its faster and safer payment method on one of its customers' favourite retail websites. According to recent Forrester research, a third of people polled chose PayPal as their favourite online payment solution.

By accepting PayPal payments, Argos believes it can gain incremental sales from avid PayPal customers who choose to not use payment cards online and prefer the renowned security and convenience of PayPal.

Argos has experience of being a PayPal merchant through the Argos Clearance Bargains, a sales channel on eBay dedicated to selling surplus stock of small consumer electronic products. Since the channel's launch in February 2007, PayPal has processed payments for over 750,000 eBay marketplace transactions for Argos. Adding PayPal as a payment option on Argos.co.uk was a natural next step.

Both companies will be looking to increase their m-commerce customer propositions in 2011. PayPal is a global leader in mobile payments, with more than a million of its UK customers making payments on their mobiles. Globally, PayPal generated $750 million in total payment volume through mobile in 2010 - up from $25 million in 2008. Mobile is seen to be a potential growth area for the payment partnership.

Cameron McLean, General Manager, Merchant Services at PayPal UK said, "We're delighted that our customers can now use PayPal on Argos.co.uk - one of their favourite online shopping sites."