With general availability arriving next month, PayPal has launched its new service targeting small businesses, 'PayPal Here', which offers multiple methods of payment to firms that would otherwise have to arrange various services and purchase costly equipment to cover the same breadth of payment offerings.
The new service is supported by a free app and fully encrypted thumb-sized card reader for iPhone and soon Android. PayPal Here allows small businesses to accept debit and credit card payments, checks and PayPal using a single product. Cards can be swiped or entered manually and, along with cheques can be scanned by the smartphone's camera. Direct invoicing from the app is also possible.
Offering a free card-swiping device for a smartphone and relying on transaction percentages as profit is not a new concept, however PayPal Here is the first to offer such a large range of secure payment options and, for such a popular service. Rates themselves are very reasonable at 2.7 per cent for card swipes and PayPal payments, with PayPal offering business debit cards for quick access to cash, which provides 1 per cent cash back on eligible purchases, effectively reducing the transaction rate to 1.7 per cent for those who use the card regularly.
One might expect their banks to offer better rates when it comes to card swiping, however, generally transaction rates are greater as third-party firms such as PayPal and Sage accept a level of responsibility for fraudulent or incorrect transactions, lending them a better relationship with our banks and, these services tend to work within slightly lower margins, typically working out cheaper than the direct alternative.
If you run a small business or even a small store on eBay, it may very well be worth considering PayPal Here.
