Unlike Google NFC, PayPal is creating a different payment network that merchants can work off of. This creates competition and a non-reliance on the traditional payment network. We’ve seen companies like Dwolla introduce simple bank to bank transfers for customers using the registered e-mail or phone number. In the same way, these terminals are acting as the proxy for our phones or computers to make payments. I am loving this innovation.

retailers will be able to receive payments via a PayPal Access Card or through an “empty hand” payment in which a user accesses their PayPal account by entering in their phone number at a point of sale terminal. In both cases, they will need to confirm a transaction with a PIN code

via How PayPal plans to scale its in-store payment system — Tech News and Analysis.