Paypal is not staying behind in mobile payments. The highly popular internet bank has just announced Paypal Here and its mobile credit card reader. This would allow customers with a smartphone to charge credit cards straight from their devices, a feature that most users currently turn to Square for.
Paypal is a much larger company, though. And it is utilized by most users that deal with any type of internet currency transactions. It will be convenient to integrate this service to one’s current Paypal account.
The global e-commerce company is also bringing a bit of extra competition by offering lower fees; charging 2.7%, as opposed to Square’s 2.75%. The app and encrypted card reader are offered for free. Paypal also reminds us that their free debit card offers 1% cashback, virtually bringing the fee down to 1.7%.
It is fairly simple to operate. The user needs to set how much the customer will be paying. After that, they simply swipe the card, and hand the device over to get a signature (and a tip). It is even possible to send a receipt to the customer’s phone. The app also works as a checkbook, as it records purchases made with cash or checks. And if the card can’t be read, the credit card transaction can be done manually.
The free card reader looks rather nice, albeit a bit bigger and bulkier than Square’s. It features a sliding “wing,” which helps stabilize the reader with the phone’s support when connected to the headset jack. It looks like a great option for small businesses and individuals.
If you are looking to join the party, you might have to wait a bit. The app will first be launched for iOS, which is what Paypal used to demo the new product. But an Android app is in the works, so we shouldn’t have to wait too much.
What do you guys say? Square forever? Or are you making the move to good ol’ Paypal?