or Connect
AppleInsider › Forums › General › General Discussion › PayPal unveils competitor to Square's credit card reader
New Posts  All Forums:Forum Nav:

PayPal unveils competitor to Square's credit card reader

post #1 of 18
Thread Starter 
EBay-owned payment giant PayPal is looking to further expand its presence beyond online transactions, and announced on Thursday it will be introducing a credit card-reading smartphone attachment aimed at small retailers that will be in direct competition with existing solutions like Square.

The new service, called PayPal Here, is part of the company's gradual move into brick-and-mortar stores and will target small businesses that do not currently have comprehensive payment systems in place, reports The Wall Street Journal.

Since PayPal's inception in 1998, the company's online money transfer service has become the de facto payment solution for many websites, but the eBay subsidiary has been gradually expanding into the physical space.

“What consumers are looking for is the ability to shop anytime, anywhere,” said eBay CEO John Donahoe. He added that with PayPal Here, a merchant needs only a smartphone to accept payments.

The addition of the new triangular credit card reader extends the service and works exactly like Square's offering, which plugs directly into a smartphone's headphone jack. Unlike Square, however, PayPal's reader currently only supports the iPhone, though an iPad-native app as well as Android versions will be available soon.

Along with the card reader, merchants can manually enter a customer's credit card information, scan cards with the iPhone's camera or email a customer an invoice for later payment. In addition, U.S. users will be able to take pictures of personal checks to receive payment.




The service will take a 2.7 percent commission for each credit card swipe or PayPal transaction, while check payments will be free. Interestingly, merchants who scan or manually input credit card information will have to take a 3.5 percent hit plus a 15 cent fee per transaction.

PayPal Here has already rolled out to select merchants in the U.S., Canada, Hong Kong and Australia and should be available to the public within the next few weeks.

[ View article on AppleInsider ]
post #2 of 18
Quote:
Originally Posted by AppleInsider View Post

The service will take a 2.7 percent commission for each credit card swipe or PayPal transaction, while check payments will be free. Interestingly, merchants who scan or manually input credit card information will have to take a 3.5 percent hit plus a 15 cent fee per transaction.

That is pretty typical since charges without the card in hand run a higher risk of fraud.

Life is too short to drink bad coffee.

Reply

Life is too short to drink bad coffee.

Reply
post #3 of 18
PayPal freaking sucks. I don't have to tell any stories you all know it.
It making me I'll just thinking about them.
post #4 of 18
More than ever do I want Apple to release NFC in the next iPhone that is tied to their iTS for making transactions.

This bot has been removed from circulation due to a malfunctioning morality chip.

Reply

This bot has been removed from circulation due to a malfunctioning morality chip.

Reply
post #5 of 18
Interesting design... looks broken, literally.
post #6 of 18
I use Square and really like the aesthetic. Also, they will transfer your funds into your linked bank account the next day now. PayPal takes two to three days. But Square is charging .05% more. I may add this to my bag, but only if it's a big job and I want to save some money on the transaction.
post #7 of 18
These card readers are clever, but these are mostly suitable for micro businesses. If you have an inventory of more than 20 items, I don't think how this would work. What about a scanner? POS systems are expensive because they can handle the front of the store and also the back end office. I still need a computer with the idevice correct? If a computer is necessary, then why not go with a computer based POS? And what about debit bank cards? Is there an iOS turnkey POS system?
post #8 of 18
Quote:
Originally Posted by Kung Fu Guy View Post

These card readers are clever, but these are mostly suitable for micro businesses. If you have an inventory of more than 20 items, I don't think how this would work. What about a scanner? POS systems are expensive because they can handle the front of the store and also the back end office. I still need a computer with the idevice correct? If a computer is necessary, then why not go with a computer based POS? And what about debit bank cards? Is there an iOS turnkey POS system?

I agree with you but these micro businesses benefit greatly from these devices. Some friends in NYC told me that nowadays many street vendors around Times Square and Chinatown are using iPhones with Square readers so they can accept Credit Cards.


Can I cue up Huey Lewis' "it's hip to be square"

Personally, I'd prefer to support Square ( the innovator ) rather than PayPal ( the copycat.)

eBay ( who owns PayPal ) sat on their butt when they should have innovated. They never integrated Skype into eBay which could have been revolutionary, instead they sold it bc they were to clueless what to do with Skype.
post #9 of 18
We need to get the credit cards out of way. They are such a scam any more. As a small business owner, they really eat into my bottom line. 3% on a $1200 transaction is ridiculous.

I've been calling for my clients to switch over to Dwolla. Fantastic experience thus far.
post #10 of 18
Quote:
Originally Posted by AppleInsider View Post

The addition of the new triangular credit card reader extends the service and works exactly like Square's offering, which plugs directly into a smartphone's headphone jack.

Square is involved in a patent dispute with the guy who they asked to design their card reader, who filed a patent with just his name on it (actually a bunch of patents). Of course detailed plans for such a device had been published openly on the internet years earlier, so I don't understand how anyone ended up getting patents on it! Probably PayPal is licensing these patents.
post #11 of 18
Hopefully competition will drive the fees down. Back in the day, I remember calling Costco's CC processor to recalculate my fees. Their math almost never added up.
post #12 of 18
It would be helpful if you would provide a link to the product mentioned in the story...

www.paypal.com/here
post #13 of 18
Quote:
Originally Posted by AppleInsider View Post

Unlike Square, however, PayPal's reader currently only supports the iPhone, though an iPad-native app as well as Android versions will be available soon.

That didn't take long... or you guys misread something...



"Free card reader and app.

Works with Apple iOS and Android products."

https://www.paypal.com/webapps/mpp/c...-reader#tabs-5
post #14 of 18
Have none of these companies thought to make a chip and pin based product? Thats used throughout the UK and Europe.
post #15 of 18
Quote:
Originally Posted by irnchriz View Post

Have none of these companies thought to make a chip and pin based product? Thats used throughout the UK and Europe.

iZettle uses a chip based system, but does not allow pins. Mobile phones won't allow it. You must sign your name. How antiquated? iZettle is nice, but seems to be even more limited in its usefulness than the Square Register.

https://www.izettle.com/help/why-doe...le-use-pins-2/
post #16 of 18
Quote:
Originally Posted by Kimk69 View Post

PayPal freaking sucks. I don't have to tell any stories you all know it.
It making me I'll just thinking about them.

+1, I refuse to use them. Too many security breaches in the early years, a horrid interface (took forever to help a friend figure out how to change his address when he moved), and there's that generally slimey feel from being associated with eBay. I've actually forgone purchases when the only option was PayPal.
post #17 of 18
Quote:
Originally Posted by iluomo View Post

I use Square and really like the aesthetic. Also, they will transfer your funds into your linked bank account the next day now. PayPal takes two to three days. But Square is charging .05% more. I may add this to my bag, but only if it's a big job and I want to save some money on the transaction.

Do you literally mean 0.05%? Or do you mean 5%? 'Cause I'm sorry, if it's 0.05%, big whoop. On a $100 transaction, that's an additional 5 cents. On $100,000 in sales, that's an additional $50. In other words, it's costing you more to think about it and to juggle PayPal and Square than to just stick with Square!
post #18 of 18
I moved from traditional CC terminal to square about a year ago and I love it. With my old system if i did not make a minimum in sales i was charged $20 per month. there was per transition charge and other small fees. they nickeled and dime you. thou the fee for CC is higher with square i feel its easier to manage. CC still suck for small biz like myself and i am thinking of adding a service charge to customers who use them. I know a few biz that do. After all if you sell and item for $1000 and you pay 900 for it then your 10% margin shrinks to 7% when a customer buys with CC. Also you have to add is Sales tax that your playing a CC fee so 7 becomes 6. Why bother to sell anything if you not making much off the sale.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Discussion
AppleInsider › Forums › General › General Discussion › PayPal unveils competitor to Square's credit card reader