Paying for things through a mobile phone is something that many consumers are struggling to get used to. They often have concerns over security when buying things through their phone, even if these are unjustified. Some people are also put off by the fact that it is not very easy to do and they will often wait until they get back to their main PC to make a purchase.
In order to tackle the problem, the world’s leading payment portal, PayPal, has introduced a method which it hopes will bring people on board with using their payment portal on mobile devices. There developed a new payment app for mobile phones which is going to be launched in the near future and it is going to allow small businesses to accept payments easily through their mobile phones.
The company are hoping that if they experience success in the mobile payment system market that they will become as popular as some major banks. In fact, they have said that they would like to replace the need for banks in the mobile market. The vice president of global product development is Sam Shrauger and he has commented, “The online and offline worlds are coming together in a way that has never been seen before and this application is going to make this merging even more complete.”
The application is called PayPal Here and it allows for retailers to accept payments by cards or by cheque simply through the use of their mobile phone. The application uses the inbuilt camera to capture an image of cards or checks in order to take payment. It is also possible to make digital transfers of money through the application.
Many of these technologies are already in existence but PayPal is packaging them in a different way. The application here is clearly targeted towards businesses and is not being targeted at the consumer market in any way. PayPal already has applications that are in use in the consumer market and they include many features, such as a calculator for splitting dinner bills and calculating tips.
The new system is an entirely separate app and it removes all the additional features that merchants might see as unnecessary, such as the tip calculator. The fees are also calculated on a different basis when compared with the online version of PayPal. Merchants have to pay a flat rate of 2.7 percent for every transaction done on a credit or debit card. There is no charge for accepting a cheque.
This pricing might be regarded as quite expensive by many merchants but the company are also giving them a debit card that offers up to 1 percent cashback on certain purchases. This is a clever piece of marketing that might make the system more appealing to certain merchants.
Shrauger continues, “PayPal has managed to be a successful company in the payment portal market because it stays ahead of fraud. The mobile market presents a new challenge for the company and we are working very hard to reduce the risk that our users have. We have built technology around the idea of keeping users safe and their security is our primary concern.”
A point-of-sale system by the company is being trialled at the United States company, Home Depot, and the system is going to be installed in all of the company’s 2000 stores. It is expected that in the near future PayPal are going to be introducing the system to 20 other merchants across the United States. PayPal is a company that is expanding in this market very quickly and from there behaviour it is clear that there is plenty of room for growth.