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McDonald's, PayPal partner on mobile payment pilot

Customers in some French McDonald's locations have a new way to pay for their Royale with Cheese. The fast food chain is working with PayPal to test mobile payments in 30 of its restaurants in France, according to a report from Reuters. The test will let PayPal accountholders pay for their meals using PayPal's digital wallet and mobile app.

McDonald's is the latest merchant to partner with PayPal on their offline, mobile strategy. A division of online auction company eBay, PayPal began testing offline payments for brick-and-mortar merchants last year, first with big box retailer Home Depot. It signed 15 additional merchant partners earlier this year.

By adding McDonald's to its stable of merchant partners, PayPal could significantly expand the number of locations where its 114 million accountholders can pay with their PayPal accounts. McDonald's has 30,000 restaurants worldwide.

According to the Reuters report, PayPal began showing off its payment option to McDonald's franchisees earlier this year. For now, the test is limited to France, and there's no word from PayPal if or when it will expand the test.

For more stories on this topic, visit the Restaurants research center.