PayPal’s successful mPOS device ‘Here’ will finally make the jump to the UK later this year, and is set to release as a cheap alternative for independent retailers.
The device, which has so far been reasonably successful in the US – even up against its strong competitor Square – has seen a slight redesign from the card reading dongle that attached to smartphones.
To comply with Visa’s best security practices, and increasingly common European protocol, PayPal have released a small chip & pin reader for their ‘Here’ device in the UK.
The move is an incredibly smart one as, for “under £100”, a small retailer or business can purchase the system for use in all their transactions and, thanks to being a trusted brand, PayPal should manage to go up against the UK competition of iZettle with relative ease.
iZettle’s card reader may be cheaper – priced at just £49 with 2.57 per cent on each transaction (compared to PayPal’s 3 per cent) – but as the UK is PayPal’s largest market outside of the US, iZettle has some stiff competition despite it’s head start.
“At Paypal, we spend a huge amount of time talking and listening to small businesses,” said PayPal president David Marcus. “They are the core of Paypal’s business and they’ve told us that they want a simple, secure way to take card payments anytime and anywhere they trade.”
PayPal’s jump into the small business space isn’t a foolhardy one either, as many other companies have taken note of the emerging market in this sector. According to PayPal, 89 per cent of UK adults carry at least one credit or debit card, and 66 per cent of payments made to small businesses comes in the form of cash or cheque.
“Cash and cheques have served us well over the years but businesses that rely on them risk missing valuable sales,” said PayPal’s managing director Cameron McLean.
Do you think the arrival of a tweaked PayPal Here system for the UK is a good move by the online payment giant?
Perhaps the market is already too crowded and PayPal should have thought of new and innovative ways to entice retailers and consumers into making payments?
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For more information around the wonderful world of cards and payments, check out Cards and Payments Africa 2013 where the future of payment technologies will be discussed at length.