A brand new gadget is about to be launched in the UK by PayPal, the eBay-owned payment processing company. This new device will allow small businesses along with traders to take payments from local people using their own smartphone. This is something that the company launched last year already in the US and is called PayPal Here. It is a small pocket-sized attachment which can be plugged to your phone and takes payments with a PIN code.
This new solution is intended to provide more means to local businesses other than the cash-in-hand process, instead leading to a cash-in-handset model for British entrepreneurs and small businesses. Any shop, restaurant, market, taxi or even independent freelancer can now accept secure payments with the use of a PayPal account or via credit or even debit card, instead of having cash on you.
PayPal Here will be available in England later this summer, but some critics already warned that the system must be well priced if it wants to gain market share with small businesses. PayPal is handling over $145 billion in total payments during the year of 2012, with more than 123 million active users, including 18 million living across the UK.
Mobile payments are not new for the company which has been experimenting with them for at least a few years, having a smartphone app already for both iPhone and Android. It also launched special apps in cooperation with fashion retailers last year.
According to the company, PayPal believes that this new system will be a game changer for many small businesses as it will enable them to take credit or debit cards without having to buy into a full chip and PIN system from a bank, which typically costs a lot of money. This new service is aimed specifically at those who usually deal with cash or cheques. Using this gadget will require a small fee per transaction.