PayPal has just launched a new chip and PIN device that helps small businesses like taxi firms and market stall vendors to accept card payments. ‘PayPal Here’ targets small businesses which have always relied on cheques or cash and may find it very expensive to accept card payments.
A customer at a small market store would use the PayPal device in the same manner as they would use a chip and pin machine at any high street store. The trader’s smartphone acts like a supermarket’s till and has an app to which the PayPal device is linked.
PayPals’ spokesman said the innovation was specifically targeted at seasonal traders and small businesses since they would not be unnecessarily bound by any contracts and would therefore be required to pay a small fee for every transaction and a one-time-only charge for the device, meaning that businesses need only use the device when they had to process card payments.
The pocket-sized gadget will debut in the country this summer having being specially made for the locals who are already used to the chip and pin technology. The PayPal managing director, Cameron McLean said that cheques and cash had fulfilled their purpose in the past and those businesses which relied exclusively on such methods of payment risked missing out on valuable sales.
Technological innovations have made it easier for consumers to change their tendency of using cash all the time since businesses are now installing payment points for people who would like to make fast payments for relatively cheap items by quickly swiping their cards instead of paying for them in cash.
The Payments Council is the transaction body developing an industry-wide scheme that will enable people to make money transfers to businesses or friends and will be as simple as texting; it is anticipated to start running in the spring next year.