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PayPal debuts Here card reader

PayPal has entered the smartphone app market with its limited release “Here” card reader, a result of project coordination with the San Francisco-based fuseproject that will allow PayPal users to pay using smartphones at participating locations.

The Here card reader plugs into the smartphone’s audio jack, and a small panel flips down from the card reader to prevent the device from pivoting while reading cards. The associated app will emit a sound effect that indicates a successful read and the completion of the transaction, Gizmag reports.

Participating merchants will display the Here logo and business information will be displayed in the PayPal app directory. Merchants will have the capability to send invoices within the PayPal system, complete with security and fraud protection.

The transactions will be subject to a 2.7 percent transaction fee. The Here card reader will first be released in the U.S., Australia, Canada and Hong Kong for IOS 4.0 iPhone users and, eventually, Google Android users, according to Gizmag.

After Here launches in the U.S., PayPal has plans to expand into China and India, Asia’s two biggest consumer markets, over the next 12 to 18 months.

“Today, PayPal is used mainly for cross-border international payments for both countries,” Rupert Keely, senior vice president for Asia Pacific at PayPal, said, according to Reuters. “The plan is to try to enter both markets for domestic payments.”

One Response to PayPal debuts Here card reader

  1. Philip Cohen says:

    Square (in which Visa bought an interest in 2011) has absolutely nothing to worry about, sans its effectively mandated use on the eBay marketplace, the clunky PreyPal could not hit the side of an old timber barn, let alone a modern B&M one.

    “Anuj [Nayer], who is PayPal’s Global Director of Communications, said payments processed through PayPal Here would be protected the same as any other PayPal payment method – which explains why the Terms of Sale for Here includes a mention of rolling reserves. Yes, merchants who use the new card reader will be subject to the regular PayPal reserves and holds (rare occurrences for sellers in most categories, said Anuj), and PayPal is extending buyer protection to shoppers who transact with PayPal Here merchants.”

    http://blog.ecommercebytes.com/cgi-bin/blog/blog.pl?/comments/2012/3/1331862035.html/1/0#1331873673

    Well, many merchants already know what PayPal “protection” is like; many merchants already know what PayPal “rolling reserves” and “holds” are about; and many merchants already know what PayPal “buyer protection” is about—it has a hard wired bias towards the buyer: effectively there is no transaction mediation process as any reasonable person would understand it. And PayPal’s Nayer gives a different meaning to the word “rare” to what the rest of us understand it to mean … And for all this, PreyPal’s fee is only 0.05% cheaper than Square’s? Are they serious?

    Am I missing something here or is this initial launch information not enough to cause this product to be literally “dead on arrival”? Donahoe can’t mandate the use of this clunky prodict. To me it sounds like another desperate Donahoe foray with Alice down the rabbit hole.

    Next time you drop into Home Depot, ask the check-out chick if anyone has yet used (the wholly eBay-funded roll out of) PreyPal to make a point-of-sale purchase. PreyPal at B&M Point-of-Sale is little more than an eBay Dept of Spin-created illusion and is undoubtedly a total waste of eBay shareholders’ funds. PayPal Here will likewise be another eBay lead balloon …

    And, just for a laugh, some comments on PayPal “The New Way To Pay In-Store”, PayPal Digital Wallet, PayPal Debit MasterCard, PayPal Here, PayPal Local and Watch With EBay …

    http://forums.auctionbytes.com/vbulletin/showthread.php?t=24611

    eBay / PayPal / Donahoe: Dead Men Walking