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PayPal turns smartphones into credit card readers

PayPal has launched a credit card reader and app, PayPal Here, which allows small businesses to accept credit card and PayPal payments on their smartphones.

PayPal Here offers merchants the option to accept payments by swiping cards with an encrypted blue triangular card reader that plugs into a smartphone’s audio jack, or via a built-in scanning feature which uses the phone’s camera for cheque payments.

Combined with the app, PayPal Here can track cash transactions and lets merchants invoice customers directly and track payments while on the move.

PayPal Here accepts most major credit and debit cards. The reader is provided for free, with PayPal taking a cut of payments made on it.

PayPal Here is initially available in the US, Canada, Australia and Hong Kong, before rolling out to Europe and additional countries. The service is initially only available for the iPhone, with an Android app planned to launch next month.

“PayPal Here is just the latest addition to our comprehensive suite of payment solutions for small business, from PCI-compliant checkout options and invoicing, to debit cards and mobile-optimised checkout,” says PayPal vice-president of mobile David Marcus. “With PayPal Here, we are now able to serve as a one-stop shop for online, offline and multi-channel small businesses.”

PayPal Here will be direct competition to other providers including Square and Google Wallet.

Jenni Baker, London