PayPal launches mobile payment device

PayPal has launched a mobile payment solution allowing small businesses to process a wide variety of types of transaction. The solution, called PayPal Here, which resembles Square, allows businesses to accept payments by swiping cards with a fully encrypted thumb-sized card reader, use a phone camera to scan and process cards and cheques and also allows businesses to invoice directly from the PayPal mobile app.

According to David Marcus, vice president of mobile at the firm, the solution’s key differentiator is that it comes from a trusted brand in the online payments industry with more than 100 million customers around the globe.

“PayPal Here comes with our world-class fraud management capabilities, and our 24×7 live customer support. In addition to accepting more payment methods, PayPal Here offers a simple flat rate of 2.7 per cent for card swipes and PayPal payments,” he said.

“Merchants are also given a business debit card for quick access to their funds and 1 per cent cash back on eligible purchases – which means if you use the debit card, your fees are actually just 1.7 per cent.”

PayPal Here is available today for select merchants in the US, Canada, Australia and Hong Kong. It will open to all other merchants in those countries next month, and PayPal said it will announce the availability of the solution in more countries soon.

The eBay subsidiary recently also unveiled a newly re-designed and re-architected digital wallet at US arts and digital festival SXSW, which it will start to roll out from spring this year.