PayPal unveils new global mobile payments solution

PayPal announced PayPal Here, the first global mobile payments solution that allows small businesses to accept almost any form of payment.

The service includes a free app and fully encrypted thumb-sized card reader, which turns any iPhone, and soon Android smartphone, into a mobile payment solution. With PayPal Here, small businesses, service providers and casual sellers can send invoices or accept debit and credit cards, checks and PayPal using one product.

Merchants can accept payments by swiping cards in the card reader, scanning cards and checks using their phone cameras, or manually entering card information into the app. They can also send an invoice and set payment terms directly from the app.

With the PayPal Mobile app for iPhone, PayPal users will be able to use the “Local” feature on the PayPal app to find nearby businesses that accept PayPal Here. Once the customer is ready to pay, they can notify the merchant by a quick tap on their mobile phone.

Merchants can use PayPal Here to accept the payment by simply referencing the shopper’s name and picture – no wallet needed.

“Helping small businesses grow and accept payments has been in PayPal’s DNA since its inception 14 years ago,” said PayPal’s vice president of mobile, David Marcus. “We’ve heard small businesses loud and clear. They don’t want to miss sales opportunities because they can’t accept the payment type that their customers want to use. They want quick access to their money, a reliable card reader, and one transparent, low fee to process these payments. I’m thrilled to launch PayPal Here because we’ve been able to bring all of these key features together into a product that’s so simple to use.”

PayPal Here offers a competitive fee structure with no monthly account or set-up fees. Merchants pay a simple flat rate of 2.7 percent for card swipes and PayPal payments.

In addition, every PayPal Here merchant will receive a business debit card for quick access to cash and 1 percent cash-back on eligible purchases. If merchants use the debit card for purchases, their fees effectively come down to 1.7 percent.

The PayPal Here card reader and merchant app for iPhone are both available today exclusively to select merchants in the United States, Canada, Australia and Hong Kong. It will be generally available in those countries next month. The Android version of the PayPal Here merchant app will also be available at that time.

Don't miss