CVS Now Accepts PayPal & Venmo QR Codes at Checkout

PayPal revealed this morning that its users can now utilize either PayPal or Venmo QR codes during checkout at over 8,200 CVS stores nationwide. The company highlighted this as the first instance of a national retailer integrating PayPal’s QR code checkout technology at the point of sale. This expanded payment choice will also provide CVS customers with additional “touch-free” payment methods – a growing preference due to the ongoing coronavirus pandemic.

CVS and PayPal initially announced their collaboration on a point-of-sale solution in July, forecasting the implementation to occur during the fourth quarter of 2020.

The QR code checkout process will draw funds from the customer’s PayPal or Venmo account balance, linked bank account, or debit/credit card, functioning identically to an online transaction. Venmo customers will also have the ability to leverage their Venmo Rewards program.

PayPal confirms that there are no additional fees associated with these transactions. Furthermore, CVS’ ExtraCare Rewards Program members can continue to redeem and apply their savings through their ExtraCare account when using PayPal’s QR code checkout.

The entire process is designed to be touch-free, relying on QR code scanning rather than physical card swipes, insertions, or keypad entries.

CVS reports a growing consumer preference for contactless payment options at this time.

Data from Forrester indicates a 43% increase in touch-free transactions at CVS since January. Additionally, PayPal notes that 11% of the U.S. population is now utilizing a digital payment method for the first time as a result of the pandemic. The company’s own research also shows that 57% of consumers base their shopping decisions on the digital payment options offered by merchants.

To initiate the new QR code checkout, customers should open their PayPal or Venmo app, select the “Scan” button, and then choose the “show to pay” option.

This new checkout experience was enabled through PayPal’s partnership with InComm, a payments technology provider, which deployed the PayPal QR code technology via cloud-based software updates to point-of-sale systems.

While CVS is the first national retailer to implement PayPal’s QR code checkout, PayPal states that it has agreements with 10 other major retailers for similar rollouts, including Nike, Tumi, Bed Bath & Beyond, and Samsonite. The company is also currently in discussions with over 100 additional large retailers regarding this technology.

“The introduction of PayPal and Venmo QR codes at CVS Pharmacy stores will not only offer health-conscious customers a touch-free payment method at checkout, but will also extend the security and reliability of PayPal and Venmo transactions to in-store shoppers,” stated Jeremy Jonker, PayPal senior vice president / head of Consumer In-Store and Digital Commerce, in a press release. “We are pleased that PayPal and Venmo QR codes will contribute to the safety of CVS customers and employees, particularly within the essential pharmacy retail setting as we approach the winter season.”

Alongside the CVS announcement, PayPal also confirmed that its recently unveiled “Pay in 4” feature – allowing customers to divide purchases into four installments – is now fully operational across millions of retailers.