PayPal to introduce mobile chip-and-PIN payments service in Europe
The service will be available in the U.K. first but other countries will follow, PayPal said
IDG News Service - PayPal will introduce a mobile chip-and-PIN version of its payments service in Europe, starting with a selection of U.K. businesses over the coming months.
PayPal Here will fully launch in the U.K. this summer and will be available in other chip-and-PIN markets after the U.K. launch, PayPal announced in a blog post on Thursday.
The service processes payments using an iPhone or Android app in combination with a handheld card reader that connects to a mobile phone using a secure Bluetooth connection. Merchants log in to their PayPal account on the app, enter an amount and press charge. The customer then slides a payment card into the reader, confirms the amount on the phone and types the PIN code into the keypad on the card reader to authorize the payment. Afterwards, the merchant can email or text the receipt to the customer.
PayPal Here will be available in the UK at APS95 (US$145) for the device, and a flat fee of 2.95 percent plus APS0.20 per transaction. There's no contract or ongoing fees, PayPal said.
Like its European competitors Payleven, iZettle and Elavon, that all offer similar mobile chip-and-PIN services in the U.K. and various other European countries, PayPal is targeting small businesses such as market stalls, shops, restaurants and taxis that traditionally relied on cash or cheques, Paypal said.
PayPal is a relative latecomer to the European mobile chip-and-PIN market and the competition is already establishing itself in more European countries.
The Swedish iZettle for instance offers its services in Sweden, Norway, Denmark, Finland, the U.K., Germany and Spain, while Germany's Payleven is also active in Italy, the Netherlands, Poland and the U.K. Global payments processor Elavon is also offering mobile chip-and-PIN payments in the U.K. and Ireland.
PayPal, though, has been focusing on countries outside of the E.U. for its mobile payments until now. Local versions of PayPal Here are already available in Canada, Japan, Hong Kong and Australia, where credit cards rely on swiping a card rather than on chip-and-PIN technology for transactions. In those countries, PayPal Here uses a swipe card reader that plugs into the headphone jack of a smartphone, much like that used by Square, which offers a similar service in the U.S.
Loek is Amsterdam Correspondent and covers online privacy, intellectual property, open-source and online payment issues for the IDG News Service. Follow him on Twitter at @loekessers or email tips and comments to firstname.lastname@example.org
- Software Asset Management: Ensuring Today's Assets Today's trends like BYOD and SaaS are new and exciting in terms of how they will help make our jobs more productive but...
- Trends Shaping Software Management: 2014 Most IT executives recognize the relationship between mobile computing and worker productivity, and have long issued notebook computers and other mobile devices to...
- Software Asset Management: Pay Attention or Pay Up There is a wide range of options for managing software assets, from in-house solutions to the cloud to managed services providers. Read this...
- Are You Prepared for a Software Audit? Just the word "audit" is enough to make anyone shiver, and when it comes to a software audit, the reaction is no different....
- IBM FlashSystem V840: Leveraging Software-Defined Flash to Drive Your Business With end-to-end, tightly integrated functionality and super-fast flash technology, products like IBM FlashSystem V840 Enterprise Performance Solution empower businesses to leverage the efficiency...
- Leveraging Flash Storage to Accelerate Oracle Real Application Clusters Join this webinar to understand the latest solid-state storage trends, the specific applications driving solid-state storage deployments and the benefits of deploying the... All Mobile Payments White Papers | Webcasts
Our new weekly Consumerization of IT newsletter covers a wide range of trends including BYOD, smartphones, tablets, MDM, cloud, social and what it all means for IT. Subscribe now and stay up to date!