PayPal has unveiled a chip and PIN version of their PayPal Here dongle for turning mobile phones into card payment terminals. This is squarely aimed at the UK market where chip and PIN is the defacto standard for accepting card payments.
PayPal are curently trialling the device with a handful of merchants including Greedy Goat who sell guilt-free goat’s milk ice cream and Green Tomato cars who offer an environmentally friendly private hire mini cab service in London with 300 self employed drivers.
Currently the price for the Bluetooth chip and PIN device has not been set – PayPal say that they are working with group of businesses within coming months to help decide the price point. However what we do know is that it will be a one off purchase fee for device. Fees will be the normal pay as you go PayPal principle with no long term commitment.
PayPal see this device as ideal for many eBay and online traders – with chip and PIN gone is the dilemma of accepting PayPal for local pick up with no need to have large amounts of cash held in a warehouse without a safe. It’ll also be ideal for those sellers who in addition to selling online have a market stool or participate in pop-up shops or craft fairs.
PayPal Here chip and PIN has struck a chord with Emma Jones, Founder of Enterprise Nation – doubtless it will be appearing in her PopUP Britain shops for her short term tenants. Emma explains “One of the challenges small businesses in the UK face is getting paid. Cash and cheques seem easy, but soon people start to realise the lack of security, the inconvenience for customers and the Friday afternoon wait at the bank to deposit your money. Equally, many people are put off from signing up with a traditional card processing company because of the high fees, long-term contract commitments and bulky handsets. PayPal Here promises to change all that, by offering start-ups and established businesses a smarter way to get paid, and helping British business to grow in the way that PayPal has already done for many small businesses here and around the world.”
I actually like the UK solution a lot more than the US card swipe plugging into a mobile phone. Having a device which I can hold, insert my own card into and enter my PIN is a lot more familiar and feels safer than letting someone skim my cards magnetic stripe. Traders can then either text or email a receipt after payment is completed and of course any refunds can be handled in the normal way from the trader’s PayPal account.
Whilst the PayPal Here chip and PIN device is not yet currently available for all merchants, you can register interest and find out more on the UK PayPal Here website.