Credit Card News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » PayPal to Jump into E-Payment with Card Reader

PayPal to Jump into E-Payment with Card Reader

By
Add to Favorites:

Square Inc. started the mobile payment “revolution” in 2010 with their card reader, attracting over 100 million users to their San Francisco-based startup by December of that year. Intuit and VeriFone followed shortly with mobile-based credit card readers of their own, and the list kept growing for companies looking to invest in this payment solution.

 

The design and payment logistics of PayPal Here appear to be very similar to the business model of Square. The interest charge planned is only a slightly lower percentage than Square`s fixed rate of 2.75%. This may cause some consumer revolt, but not enough to get them to stop selling their goods in a down economy.

Here`s a look at some basic card readers on the market today:

Square Reader, launched in 2010, has a fixed 2.75% interest rate on all card purchases through the reader. The reader has a free app and costs $9.99 to purchase, which is refunded upon signup for the Square payment program.

ProPay JAK, launched 2010, app is free to download and the card reader costs $39.99, although its transaction rate of 1.99% is a leader in the mobile payments industry.

PayPal Here, launching 2012, will be free to download and free for all Ebay/PayPal users, and charge 2.70% transaction fees, not completely favorable but offers an alternative to those tired online-only PayPal receipts.

EBayandPayPal reported a 27% sales increase in 2011, to $11.7 billion total revenue. Juniper Research projects that with this mobile device technology, PayPal may top $170 billion in transaction volume by 2015, up from $60 billion in 2011. Ironically, the reasoning behind the initial development of the PayPal service, which launched in 1998, was a way for people to accept credit for goods and services WITHOUT using credit cards.

PayPal Will Adapt To Ever-changing Future

Since the development of Square and other mobile-based credit card technologies, PayPal`s popularity has taken a dive, with consumers growing increasingly tired of paying fees for their transactions (instead of just meeting up in person to exchange cash), and becoming desperate for other options to accept payment for online transactions. Those wanting to get rid of annoying “PayPal fees” on their transactions will not find much relief in PayPal Here (although the 2.7% fee using the device is lower than the 2.9% you would have to pay if you used your PayPal account).

The next step in PayPal`s plan is to form partnerships with merchants that will allow them to take PayPal payments in their physical stores, using the assistance of the card reader.

In a recent interview touching upon PayPal Here, eBay CEO (and current PayPal President) John Donahoe described the eBay/PayPal approach to “see where the world is going and create products to fit that.” In the late 1990s, eBay and PayPal MADE the way the world was going. The eBay/PayPal joint service revolutionized the way people sell and receive payment for their goods. In 2012, it appears the longtime stalwarts of the ecommerce industry are only trying attempting to reinvent themselves with the changing times.

A Bloomberg News reader named Carl M. claims that in Canada such technologies are already in use, such as restaurants that bring Square-styled card readers to the table for instant payment. If food retailers adopt this technology in masse, it could become a more consumer-safe alternative to traditional dining, in which you are handing over your card to a complete stranger.

Add to Favorites:

Related News:

Bots Enabled by Masterpass Make Shopping Easier

By Dar Dowling, Posted: April 26, 2017

Shopping via social media platforms is gaining traction with consumers, and with this in mind MasterCard will be rolling out Masterpass. Continue reading
Wells Fargo and PayPal Partner Up

By Dar Dowling, Posted: April 25, 2017

In the near future, Wells Fargo customers will be able to pay for everything from groceries and gas to electronics and more using PayPal in brick and mortar stores. Continue reading
Alaska Airlines Expands in Texas Market

By Dar Dowling, Posted: April 24, 2017

Alaska Airlines has its sights set on growing its presence in Texas and will be adding more service into Dallas Love Field to its roster. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
You could turn $200 into $400 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
No Annual Fee
For Bad Credit