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EcommerceBytes-NewsFlash, Number 2761 - March 15, 2012 - ISSN 1539-5065    0 of 5

PayPal Here Takes Square Aim at Card Swipe Technology

By Ina Steiner
March 15, 2012

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PayPal unveiled PayPal Here, which allows small businesses to accept in-person credit card payments by swiping them with a thumb-sized card reader, and also allows them to accept credit cards and checks using a phone camera to scan and process them.

The card reader is similar to that of rival Square, a service that has become popular with artists, artisans and crafters who use the device to accept credit cards from customers offline at shows and fairs.

Square charges sellers 2.75% per swipe, while PayPal will charge a simple flat rate of 2.7% for card swipes and PayPal payments. According to Thursday's announcement, PayPal gives merchants a business debit card for quick access to their funds and 1% cash back on eligible purchases - "which means if you use the debit card, your fees are actually just 1.7%," PayPal said.

The key differentiator of PayPal Here is the brand, experience, and more than 100 million customers around the globe, according to PayPal. "PayPal Here comes with our world-class fraud management capabilities, and our 247 live customer support."

PayPal Here is available immediately for select merchants in the U.S., Canada, Australia and Hong Kong and will open to all other merchants in those countries next month.

Merchants can visit PayPal.com/here to get the free app and card reader as soon as it becomes widely available.

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About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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