Many BlackBerry users have received a similar email to the one pictured above from PayPal which mentions that pre-approved payments plan Research In Motion will expire July 29th, 2011. What does this mean? While none of us can be entirely sure without an official word from RIM, we can speculate a little about it.
What are pre-approved payments?
In essence when you set up PayPal as your preferred payment method in App World, a billing agreement is created by you and RIM. This billing agreement allows you to make purchases in BlackBerry App World using PayPal without having to enter your PayPal username and password for each purchase. It's basically the act of allowing someone to charge you (or you paying someone) for something (one time, regular, or sporadically) without logging in every time.A Recurring Payment is a payment in which you provide an advance authorization to a merchant to charge your PayPal account directly on a one-time, regular, or sporadic basis. Recurring Payments are sometimes called "Subscriptions" or "Preapproved Payments".
The fact that this prepayment plan will expire on July 29th, 2011 could suggest a couple of things:
- App World 3.0 is coming out on or around July 29th, 2011 which needs a new preapprovement plan from RIM.
- App World will no longer be supporting PayPal as a payment option.
- We'll need to log in to PayPal each time we want to buy an app.
When App World first started PayPal was the only option given to us to purchase apps so I would find it hard to believe that RIM would not be able to agree on whatever terms they have with PayPal for the use of their services. Stranger things have happened though and how long you've been with a certain partner does take a backseat to the reality of business sometimes so it would not be as surprising to see RIM cut ties with PayPal and be content with carrier billing and credit/debit card as the only payment options.
This could also be a sign that BlackBerry App World 3.0 is close to release at least in the Beta Zone for the time being and that RIM will be using a different method of allowing users to purchase and pay for apps with PayPal which would require a new type of prepayment plan. Again all of this is speculation until we get official word from RIM about it. We'll have more news as it rolls in.
- Did you receive a similar email to the one above? Let us know!