Thursday, March 29

PayPal is rivals with mobile payment

David Marcus, Vice President of PayPalMobile, Thursday announced PayPal will roll out of a mobile credit card reader, the plugs in a Smartphone headset socket, confirmed rumors that had circulated in the tech blogosphere.


In the battle for the small business payments market is the PayPal here device running direct shot at the site, the launch of Twitter co-founder Jack Dorsey.


"I think that PayPal entry into the mobile POS segment is long overdue," said Gwenn Bezard, Research Director at consulting firm of Aite Group. "It's a market, there is a demand."


Square usability and simple cost structure - dealers pay 2.75% per transaction - have turned it into a must-have for many small businesses. Apart from small traders square has also attracted the attention of visa, which has invested in it, and New York City taxi and Limousine Commission, which carries out, a pilot program to the square in taxis used.


PayPal is here about the same size as the square device a blue triangle. Sam Shrauger, Vice President of global product and experience called it "an extension of PayPal in the physical world."


Here, there are limited edition to 1,000 dealers, the iOS devices use. Shrauger said that the company rolls out is it the public in the next month or so, by which time an Android saying app available. PayPal offers free processed like square the device and the mobile application, the transactions of a user's Smartphone.


The blue triangle could spell problems for square. Bezard said "Given the PayPal user base has, it is probably huge competition for square,". Place did not respond to a request for comment.


In addition to the acceptance of credit and debit cards of claws, users can also take to process a photo of a map (check images can be processed the same way). And PayPal is undercutting square on price, collection of 2.7 per cent of the cost of a transaction for swiped transactions or payments from the buyer's PayPal account. With square, sellers pay a little more, if you manually enter in the map information.


Andy Schmidt, Research Director at consulting firm TowerGroup, CEB, said the difference in cost small enough that PayPal probably a further competitive advantage require users of the site to woo. "One who could offer the game-changer, the PayPal would to accept magnetic stripe and EMV in the same device," he said, referring to the so-called "Chip and PIN" cards, which are ubiquitous in many other parts of the world. Older, magnetic stripe is still the dominant technology.


Also, Bezard said that being able process EMV cards PayPal an edge over square, would give these cards will be expected to be more common in future in the United States and because there would be a jump in place in overseas markets to PayPal. "I'm curious to see if PayPal is really something else a will drop," he said.


Here not EMV card via claws can handle now, although Shrauger, that will change said how PayPal provides the device in other countries. "Will of course support we chip-and-PIN in markets where are widespread," he said, although he turned it off to comment, when American users of chip and PIN could get compatible devices.


Even without EMC Shrauger was chances against square optimistic over here, as PayPal can accept so many methods of payment companies. "We want them a payment solution, regardless of how they are selling" he said.


This news comes on the heels of PayPal debut of a digital wallet on the SXSW Festival in Austin and a move into the arena of brick and mortar payments earlier this year about a partnership with Home Depot. "they have a pretty effective, the attack on the payments market do," Schmidt said.

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