GOOD READS

PayPal Just Fired A HUGE Broadside At Square

RELATED QUOTES

SymbolPriceChange
EBAY54.69+0.79

As expected, this morning PayPal unveiled a triangular credit-card swiping device called PayPal Here that will let any business or individual take credit card payments.

The device takes direct aim at Square, the startup whose tiny white card reader has become increasingly common at small businesses.

The new PayPal Here reader lets merchants keep more money from transactions than Square, and the associated app takes more kinds of payments, including cash and checks.

Square recently said it now processes more than $11 million worth of payments every day.

Here are some of the features PayPal is touting:

  • The reader, which was designed by Fuseproject, has a little "wing" that flips down over the phone to keep it from swiveling around.
  • The associated iPhone app can also process cash and checks (which can be scanned), and can send electronic invoices.
  • As you'd expect, the device also accepts PayPal payments, and the process is amazingly simple. Users can use a new consumer PayPal app to find a local business that accepts PayPal, and click an option that lets them buy on demand. When the customer walks into the store, the merchant's PayPal app will recognize the person and alert the merchant, letting them give a personal greeting. Then the merchant can complete the transaction without ever requiring the user to do anything -- the amount is simply debited from the buyer's PayPal account.
  • As previously reported, the rate for processing payments is 2.7 percent — lower than Square's 2.75 percent. But also, any small business who signs up will get a PayPal debit card that offers 1 percent cash back, giving them an effective rate of 1.7 percent. So, for instance, if a merchant processes $1,000 worth of PayPal payments, they would get $973 deposited into their PayPal account. But if they use their PayPal debit card to access that account, they'd get an additional $10.

Both the Here reader and the app are free. Right now, it's iPhone only, but an Android version will be available "soon."

eBay CEO John Donohoe boasted that the new reader is better than the competition, and will quickly gain a global footprint because it's backed by PayPal. The company has already been processing online payments from mobile phones since 2006, and half its mobile volume is outside the U.S., Donohoe said.

The iPhone version of the reader will ship to a few thousand merchants starting today, but anybody else can sign up for one by visiting http://www.paypal.com/here.

Here's a close-up of the reader:

And here's what it looks like plugged into an iPhone. That blue triangle on the front prevents it from swiveling around.



More From Business Insider

Quiz: How well do you know India's economy?

Question 1

Which of these products is India the world's largest producer of?

Poll Choice Options
  • Wheat
  • Rice
  • Milk
1
2
3
4
5
6
7
8
9
10

Latest News

  • Essar cuts gasoline output after fault at reformer

    NEW DELHI/SINGAPORE (Reuters) - Essar Oil(ESRO.NS) has reduced its gasoline output due to a technical problem at a continuous catalytic reformer (CCR), a company spokesman said. "Yes, there is a technical problem with our CCR. Essar operates a 900,000 tonne-per-year CCR at its 400,000 barrels-per-day Vadinar plant in Western India. A CCR converts naphtha into superior grade gasoline. …

  • Asian stocks struggle higher, lack conviction

    Asian share markets eked out gains on Thursday as dovish comments from the head of the U.S. Federal Reserve combined with an upbeat economic assessment from the central bank to lift Wall Street for a third straight session. However, disappointing results from Google and IBM knocked their shares lower after the bell and could crimp technology stocks in the region. Indeed, the tech and telecoms sectors in Japan's Nikkei were in the red on Thursday, nudging the overall index down 0.2 percent …

  • Google, IBM results raise questions about other tech-sector companies

    Disappointing results from Google Inc and IBM may unnerve investors shaken by a strong recent selloff in tech stocks, underscoring the challenges the Internet and IT sectors face as corporate report cards come due in coming weeks. IBM blamed weak hardware sales for its lowest quarterly revenue in five years, worsened by an 11 percent slide in overall sales in emerging markets including China, Brazil, Russia and India. Like IBM, they have struggled to grow their businesses, particularly in …

  • Google misses revenue target, ad prices slide
    Google misses revenue target, ad prices slide

    Google Inc's first-quarter revenue fell short of Wall Street targets and margins narrowed as the price of its ads continued to decline, underscoring the challenges Internet companies face as the world shifts toward mobile devices. Shares of Google were down 3 percent to $539.80 in after hours trading on Wednesday, after initially sliding roughly 6 percent on the news. The number of "paid clicks" by consumers on Google's ads increased by 26 percent in the first quarter, disappointing some …

  • Gold holds above $1,300 on Ukraine; fund outflows pose risk

    Gold held steady just above $1,300 an ounce on Thursday supported by tensions in Ukraine, but the metal was at the risk of adding to recent losses as the world's biggest gold-backed fund saw its sharpest ... …

IN-DEPTH ANALYSIS & INTERVIEWS

  • This might well be India’s biggest Ponzi scam

    It was just too good to be true. Ashok Khital, 45, displays every symptom of a man who knows he's been conned. …

  • India's star studded football league

    High and mighty including Sachin, Salman & Sun Group buy ISL teams …

  • Leaderspeak with Rajesh Janey

    Rajesh Janey, President - India & SAARC, EMC shares many firsts in his life. …

  • Seed of Doubt

    Field trials have been allowed again in India. But two decades after their global launch, genetically modified (GM) crops remain controversial. …

  • Power Hungry

    Gujarat has power round-the-clock. Most other states do not. Why this will matter in the general elections. …

  • Etcetera

    The most keenly watched contest of the current general election will be the one for the Varanasi parliamentary seat, where the Bharatiya Janata Party's prime ministerial hopeful Narendra Modi squares off ... …

  • Economy vs Democracy

    As the country gets election fever, cash comes out of mattresses and turns into liquor, gifts, and food. But it is not bad for the health of the economy, reports Sarika Malhotra from the trenches. …

MARKET MOVERS

    •  
      Recent Quotes
      Symbol Price Change % ChgChart 
      Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
      You need to enable your browser cookies to view your most recent quotes.
    • Recent Quotes News

      •  
        Sign-in to view quotes in your portfolios.