Credit card readers for smartphones are on the rise, with PayPal tossing its hat into the ring with its new “Here” smartphone credit card reader. PayPal Here is looking to tap into the huge market of transactions ($4 Billion, to be exact) that Square Inc. is currently capitalizing on with its smartphone card reader. True to its namesake Square is a square-shaped device that attaches to your mobile phone so you can accept credit card payments anywhere. PayPal Here takes on a triangle shape with a similar card-swiping process to collect payments.
PayPal’s motive for this new offering is not entirely chasing down the profits corned by Square, but also aims to take offline business by storm, according to David Marcus, PayPal’s vice president of mobile.
PayPal Here offers merchants and small businesses:
- Acceptance of all four major credit cards
- Issuing of invoices
- The ability to photograph checks and credit cards
- Payment processing with or without the attachment
- Lower 2.7% fee schedule for credit and debit card transactions
From a consumer angle, PayPal Here’s consumer app plans to include a “local” button so they can pay using PayPal at participating merchants. Home Depot has already signed on, letting consumers pay using PayPal in 2,000 stores. Stay tuned – more retailers should be jumping on the bandwagon soon enough.