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Online payment giant PayPal has begun rolling out its new mobile payment device and app “PayPal Here” to select merchants in the US, Canada, Australia and Hong Kong. An announcement was made on Thursday at an event in San Francisco that the eBay-owned company would be introducing an encrypted card reader that connects to a smartphone using the device’s headphone jack.

The PayPal Here app is used to process payments using the device and allows merchants to scan or swipe credit cards, manually enter details, accept PayPal as a form of payment and accept cheques in the US. Presently there is no PayPal Here app for Android devices, only iPhone.

In a press release the company said that general availability will be available to residents within a month, and claims that an Android version of the app will be ready by then too. PayPal also promise that the device and app will be “free for both merchants and consumers, with no account setup or monthly fees”.

Instead PayPal Here will cost vendors 2.7% of the purchase amount, undercutting popular rival Square Square Creates An Online Wallet App For Real-World Payments [News] Square Creates An Online Wallet App For Real-World Payments [News] Innovative start-up Square has created a real-world payment system that operates from the comfort of your smartphone. The technology is currently limited to 50 vendors across the US, though the quick payment method is expected... Read More by 0.05%. Merchants who sign up for PayPal Here will also receive a PayPal business debit card which will enable cash withdrawals at ATMs and purchases to be made using Mastercard. The card will feature cash-back of 1% on eligible purchases, effectively bringing the merchant fee down to 1.7%.

PayPal Here is being marketed as the world’s first global mobile payment system in direct competition with Square, launched by Twitter co-founder Jack Dorsey. Square recently announced that it was processing $4 billion in payments per year but has yet to launch outside of the United States.

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In other PayPal news the company has also updated their iPhone app with a new feature called “Local” which lets users find nearby businesses using PayPal Here. Users can then notify the merchant when they are ready to pay via the app and the transaction can be carried out between the two devices, much like the system already in place at Square.

If you would like to register your interest for a free reader then you can do so at the PayPal Here microsite.

Source: PayPal-Media

  1. Rye Campbell
    April 18, 2012 at 8:55 pm

    It's really not just about who's creating the most noise in the mobile payment scene anymore because if, like me, you want an alternative better suited for your needs you only need to do a little research and you'll see there are a quite a few up-and-comers now. Personally, I am looking forward to the launch of mPowa (www.mPowa,com) which I believe will be perfect for my business needs plus the .25% fee per card transaction fee is pretty hard to overlook.

  2. Philip Cohen
    March 24, 2012 at 4:46 am

    And, just for a laugh, some analysis of "PayPal: The New Way To Pay In-Store", PayPal Digital Wallet, PayPal Debit MasterCard, PayPal Here, PayPal Local and Watch With eBay ...

    http://forums.auctionbytes.com/vbulletin/showthread.php?t=24611

    eBay / PayPal / Donahoe: Dead Men Walking

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