Launched today, PayPal’s ‘Here’ touts itself as the ‘simple way to accept credit cards and PayPal anywhere you do business.’ Aimed directly at Square and Intuit’s GoPayment, businesses can now accept PayPal payments directly through a smartphone app and the Here device. With nearly 100M users, the addition of Here adds an formidable new competitor to the mobile payment space, and a very viable option for businesses at POS, wherever that may be. Here also provides the ability to invoice from the app like Square (send invoice to payer’s email or mobile), as well as track cash payments (and issues receipts for them). What about the UX? See the video below and let me know if you think it competes with Square.
Here are the highlights of Here from Paypal’s site:
Accept more than just credit and debit cards. Take PayPal and checks, invoice from the app, and track cash payments — all with PayPal Here. (Q: Does Square or GoPayment provide businesses the ability to track cash and check transactions in the same way?)
Payment funds are immediately available in your PayPal account today. Withdraw funds on the spot with a PayPal merchant debit card and get the added benefit of 1% cash back on eligible purchases made with your card. *Checks may take up to 6 days.
All card swipes and PayPal transactions have the same 2.7% rate with no hidden fees or commitments. Taking checks and issuing invoices are free of charge. (Square is a flat 2.75% and GoPayment ranges from 1.7% to 3% of the transaction).
Free card reader and app. Works with Apple iOS and Android products. (No iPad or Android tablet app right out of the box? Will they work toward competing with CardCase?)
Got questions? Let’s talk. Get live phone and online support from a real person. (Will be interesting to see how the business support services stack up against one another)
Trust PayPal to protect you and your customers. Unlike other mobile payment solutions, PayPal Here comes with an encrypted card reader and is backed by PayPal’s world class risk management capabilities – secure, reliable and easy transaction processing and fraud protection for you and your customers. (there will surely additional responses to these claims from Square and Intuit).
PayPal Here charges users 2.7% compared to the 2.75% per transaction charged by Square. Each merchant that signs up for the service will also be given a PayPal Debit card which can be used to take cash out of your local ATM as soon as a sale is made (My take: this ‘instant’ feature is huge), or can be used as a Mastercard to make purchases — purchases using the card will earn a merchant 1% back instantly, essentially taking that transaction fee down to 1.7% (My take: again, huge incentive for businesses to use Here).
In addition to PayPal Here, PayPal also showed off an updated version of its mobile app today adding a Local section where you can browse for merchants in your area that currently use PayPal. Much like Square’s register app, you can then notify a merchant you’re on your way to make a purchase. Your name and profile photo will show up for the merchant at its point of sale, allowing you to complete the transaction by simply asking for your purchase to be billed to your PayPal account. (My take: PayPal needs to improve their UX, but overall this is a product that will do well as the UX matures).
See more at Mashable
Business Insider: PayPal Showed The Future Of Retail Today — And It’s NOT The New Credit Card Reader
PayPal is on quite the roll. At SXSW, they also launched their new digital wallet and updated browser UX. They are moving full bore into POS, and are likely adding additional reward and proximity hooks shortly. Great stuff. Check out PayPal unveils new Digital Wallet at SXSW 2012 and PayPal to Give Attendees First Look at New Digital Wallet
How will this impact Square, Intuit GoPayment, and other payment applications? With over $7B in mobile payments projected for PayPal in 2012, and over $4B for Square, this will certainly increase adoption and make an additional splash into the POS and merchant transaction market. Stay tuned for further disruption.
What’s your take?