Paypal Galactic prepares for space commerce

Paypal announced today that company is working on a product to make inter-planetary payments. In other words, a space traveler would be able to pay for things from space.

No, that is not another marketing strategy or PR jibber-jabber. Company is serious about getting into space tourism business. According to the company with firms like Virgin Galactic and Space X expanding plans for trips to Mars, it doesnt hurt to think or focus more and more to issues concerning space commerce.

“We dont have all the answers right now, but its clear we wont be using cash when were in space,” PayPal president David Marcus told CNNMoney. “We feel its time now — not next year, not when [space tourism] starts to happen — to start figuring out what this looks like.” he added.

In recent years, space tourism companies such as Virgin Galactic and SpaceX have made big steps in presenting the space exploration experience to the general public.

In 2011, Russian firm, Orbital Technologies stated intentions to launch a space hotel that is planned to be open in 2016. Trips to Mars could be possible within the next ten years. And Virigin Galactic hopes to start private trips to suborbital space by the end of this year.

Thinking ahead of being the world’s first and preferred monetary system that reaches into space, the company has partnered with members of the scientific community to answer questions about the future of space commerce, such as what would a space currency look like.

According to Paypal a need of space currency is needed as of right now for astronauts who still need to pay for basic necessities or entertainment. Space commerce could lead to evolution of all of the payment segments: banking systems, risk and fraud management, regulatory concerns and more. Questions of critical importance for the project are being asked as at the start of every initiative – What will be the default currency in a cash-free space system? Who will provide customer support?

Those questions are up to be solved if company wants to enter the inter-space business. “Its easy to perceive this as kind of gee-whiz, even silly, if you just read the headline,” he said. “But these are real, difficult, important problems that need to be sorted out.” PayPal president David Marcus told CNN Money.

Ebay which acquired Paypal to optimize its services recorded 0.60% share price loss yesterday being up 0.65% year to date.