Continuing on our last article on small business options, PayPal announced today that they are expanding their Paypal Here app for the iPad.
This is an expansion of their current app available for the iPhone only. It’s target are small businesses that need a more robust solution than the iPhone version but aren’t quite ready for a full pos solution yet.
The iPad version can connect wirelessly to a cash register for easy reconciliation as well as a printer to allow to receipt printing. While still offering the existing services the current app offers.
The card reader and app are free for users but users have to wait for the read to be shipped. However this does not preclude a user from using their app right away. Users can choose to key in a transaction by entering a card number in or scan the card itself by taking a picture of the credit card and storing it through the app.
The fees are actually pretty reasonable. 2.7 percent for all transaction that are swiped and a higher fee for transactions that are keyed or scanned. Not bad for a small merchant and it seems easy enough to set up. Merchant accounts are set up through Paypal and the process appears to be relatively painless.
So what are the downfalls? Not much I must say. It doesn’t currently process Interac debit transactions, presumably because the solution is not chip and pin. However, it appears that Paypal is getting ready to launch their EMV solution in Europe so it could just be a matter of time before they can launch a similar version in Canada and they would be foolish not to include Interac processing at that time.
But because the solution is not currently EMV, merchants are liable for all transactions. No chargeback protection can be scary however, given the pilot in Europe, it’s only a matter of time.
Another new player in the market like this is going to change the industry for the small merchant. PayPal may be the only real competition for Square at the moment. And the large acquirers will need to step up their options if they want a piece of this market.