PayPal Here allows UK traders to take credit card payments on their smartphones
By Reuters and Nicole Kobie
Posted on 22 Feb 2013 at 09:56
PayPal Here is arriving in the UK this summer, letting small businesses take card payments via a mobile device.
PayPal Here arrived in the US for swipe cards last year, but will arrive in Europe this year with support for Chip and PIN systems.
The system uses a small handheld device that allows merchants to accept credit and debit cards, connecting to a new PayPal app that merchants can run on iPhones and Android smartphones.
"You pair the device with your Android phone or iPhone to accept secure payments anytime, anywhere you trade, whether at a market stall, shop, restaurants, taxi or even in your customer’s home," PayPal explained.
PayPal said it will launch the service in the UK this summer, but plans to release it in other European countries later.
PayPal has been slow to move into the market in the US, following the lead of Square, headed by Twitter co-founder Jack Dorsey, which attracted thousands of small merchants in recent years by offering a free card reader that attaches to smartphones and handles payments for a flat 2.75% fee. However, Square has yet to launch in the UK or the rest of Europe.
The European version of PayPal Here comes with a different device, designed from scratch by the company's UK team, because of the more complex Chip and PIN system. The approach in the US, which relies on older magnetic stripes on cards, is considered simpler and potentially less secure.
"Trying to figure out how to make Chip and PIN to work in these devices has been hard," said Rick Oglesby, a payments industry expert at Aite Group. "The gadgets so far have been fairly expensive and big and clunky."
While there's no contract or on-going fee for the service, there will be a "nominal" one-off fee for the hardware and a small charge for each transaction. The commission is 2.75% in the US.
"For Chip and PIN devices, it's not realistic to bring the cost down to zero," Oglesby said. "That tends to temper the demand a little bit. But it also weeds out really small merchants and individuals who won't use it as much."
UK businesses that are interested in PayPal Here can sign up on the website.
Is your business a social business? For helpful info and tips visit our hub.
- 20 years of PC Pro: our best covers
- Why we've closed the PC Pro forums
- How to turn off Google Location Tracking
- 20 years of PC Pro: our greatest review mistakes
- 20 years of PC Pro: our first A-List
- Wikipedia's "right to be forgotten" protest hits the wrong note
- 3D printing hits the high street for plastic selfies
- 20 years of PC Pro: What amazed us in our first issue
- How Google Glass ruined my lunch hour
- Smartphone battery packs: can a USB power pack beat the festival battery blues?
- How to sell more ebooks on Amazon
- 10 ways to make your business more secure
- Top five VoIP mistakes
- How to add in-app purchasing to an iPhone, Android or Windows app
- Remote-control ransomware: TeamViewer and software hardball
- Why laptops with serial ports matter to the Internet of Things
- Make your mobile battery last longer
- Small steps into handling Big Data
- Nexus 5: does it really run stock Android?
- How to get broadband to a garden office