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 email@example.com
- Warning: Cloud Data at Risk Experts agree that relying on SaaS vendors to backup and restore your data is dangerous. Yet that's exactly what huge portions of the...
- Where You Mitigate Heartbleed Matters Read this article to learn more about why customers must choose the most strategic point in the network at which to deploy their...
- Do More With Less: How CARFAX Consolidated Their Security Solutions Through a consolidated F5 solution, CARFAX cut site downtime to zero, secures its data, and deployed a high-performance infrastructure to support its rapid...
- Fight Malware, Malfeasance and Malingering Every year brings more extreme sets of threats than the last. The good news is that there are a range of mitigation options....
- Keep Servers Up and Running and Attackers in the Dark An SSL/TLS handshake requires at least 10 times more processing power on a server than on the client. SSL renegotiation attacks can readily...
- On Demand: Mastering the Art of Mobile Content Management Mobile device usage in the enterprise has skyrocketed, and it continues to escalate. IT must answer to users who demand access to their... 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!