PayPal Launch Smartphone Card ReaderDale Wright
PayPal have launched a credit card reader in the UK which works with an app on the iPhone to enable you to take credit card payments whilst out and about. The PayPal Here device is a small blue triangular shaped device that can be plugged into the headphone socket of an iPhone. The device is free and the first of its kind to appear in the UK. An Android version is planned for release next month.
The PayPal Here card reader works by swiping the customer’s card. They will then be required to check the amount and sign for the payment. The card reader and app are both encrypted and PayPal charges a 2.7% fee for each transaction. Most major credit cards and debit cards can be used and both the device and app are encrypted to ensure security. The card reader has the potential to speed up card payments and PayPal’s main competitor in the market, Square, have successfully launched a similar device in the US.
The mobile phone app isn’t just limited to use with the card reader device. Customers can also be invoiced directly from the mobile app. The app works with the smartphone camera which can scan the card or even a cheque and allowing payment to be processed, although the fee is slightly higher. Furthermore, a free PayPal Debit card is also available, which allows instant access to the cash and offers 1% cash back, effectively lowering the 2.7% fee to 1.7%.
David Marcus from PayPal said in his blog: “PayPal Here is the world’s first global mobile payment solution that allows small businesses to accept almost any form of payment. It’s designed to help those merchants make more sales and grow their business with confidence.”
Do you think PayPal Here has the potential to replace cash payments for on the road merchants?