Mobile payment service rolled out in UK via PayPal widget
PayPal Launches Mobile Chip and PIN Card Payment Device in the UK
PayPal has announced the launch of its mobile Chip and PIN card payment device in the UK later this year, aiming to cater to small businesses with a competitive offering. Unlike other systems such as Square and iZettle, the PayPal Here device does not plug directly into smartphones, instead connecting via Bluetooth.
The device, designed and built in the UK, is a mobile credit card reader solution that promises seamless integration into the existing PayPal ecosystem, fast transaction speeds, and broad payment acceptance. The device supports all major card types and mobile wallets, pairs with the PayPal POS app for inventory and sales management, and offers flexible connectivity with good battery life.
The exact costs for the device and transaction fees will be revealed when it is launched in the UK this summer. However, it is known that businesses will pay a one-off set-up fee for the device, with an optional dock for continuous charging available at an additional cost.
PayPal has emphasised that it is not looking to make money from the device itself, but rather to address a genuine need in the market for an easy and convenient way for small businesses to accept card payments. The device's advantages lie in its integrated payment and business management system, brand trust, and ease of use within the PayPal ecosystem.
While the upfront hardware cost and transaction fees could be potential disadvantages, the device's fast transaction processing times (2 seconds to power on, 5 seconds for contactless, 10 seconds for chip & PIN) and competitive transaction fees (around 1.75%) could offset these costs for many small businesses.
However, it is worth noting that market data suggests that only 7% of UK consumers prefer chip & PIN at checkout compared to 54% for contactless and growing QR-code usage. This shift in consumer preferences towards contactless and QR payments could affect the device's usage priorities and merchant revenues relying on chip & PIN transactions.
PayPal's second biggest market outside the US is the UK, with 18 million active users, making it an attractive market for the company to expand its services. UK-based card payments company mPowa offers a similar Bluetooth-driven system, adding competition to the market.
In summary, PayPal's mobile Chip and PIN device leverages its ecosystem integration, fast transaction processing, and broad payment acceptance as competitive advantages in the UK market, while its upfront hardware cost and transaction fees, along with shifting consumer preferences towards contactless and QR payments, present potential cost considerations when compared to other solutions.
The PayPal Here device, launched in the UK as a competitive offering for small businesses, utilizes technology to integrate with the existing PayPal ecosystem while supporting all major card types and mobile wallets. In the business sector, PayPal aims to expand its finance services further within the UK market.
The device's competitive edge lies in its financial integration capabilities and technology, providing seamless transactions and management within the PayPal system, offering a unique advantage for small businesses.
