2 years ago Paypal released its chip reader technology in U.K. and Australia. The PayPal chip-card reader is finally available in the United States and will soon arrive in other countries. It became available for US purchase on September 30.
Paypal sells two options the Chip Card Reader with a screen and key pad, and a the Mobile Card Reader that can be plugged into the audio jack of a cell phone or tablet. Paypal accepts many payment options in addition to a credit card, Visa or debit card. The portable chip card reader is very inexpensive for businesses to use; Paypal reports the Chip Card reader will cost $149, but if $3000 dollars are processed in 3 months Paypal will give back a $100 rebate. The Mobile card reader sells at $14.99.
The PayPal video demostration shows the card reader’s ability to accept payment from swipe card, and also when the customers taps their cell phone against it. Follow the link to Paypal to learn more about these devices. https://www.paypal.com/us/webapps/mpp/emv
Paypal Chip Card Reader also includes the following features:
“…compatible with iOS and Android devices, accepts chip cards (both EMV chip-and-PIN and EMV chip-and-signature), magnetic stripe and NFC transactions, including Apple Pay, Android Pay and Samsung Pay, along with other NFC-enabled devices and cards.”
Even though The Paypal Card reader is now in the US, other mobile card reading options have been around for a while; What makes the Paypal Chip-Card reader stand out is its ability to accept more payment options than others.
PYMNTS.com reports what vice president and general manager of retail for PayPal had to say about Paypal’s chip-card reader:
“While chip-and-PIN is the common form factor in the U.K. and Australia, he said in the U.S., “the jury is still out. Because of that mix, PayPal decided it’s important to provide merchants with a future-proofed solution to avoid having to purchase multiple devices to collect different forms of payments. That means providing them with one device that can process all types of payments.”
Besides the ‘future-proof’ incentive, businesses will likely adopt the PayPal chip-card reader or other readers because of pressure from Visa and Master card. According to VentureBeat:
“Visa and MasterCard have already started replacing magnetic stripe credit cards with more secure chip-embedded cards. However, starting on October 1, 2015, the two credit issuers will no longer cover the costs of fraud for merchants who have not upgraded their point of sale (POS) systems to securely process chip cards. As a result, all fraudulent charges resulting from chip card transactions on antiquated POS systems will be absorbed by the merchant — a costly prospect.
Companies like PayPal, Square, Clover, and Poynt are taking advantage of the liability shift to get merchants to switch out their legacy systems for one of their upgraded transaction terminals.”
A staff writer from Venture Capital Post describes how businesses can use the device to collect payment:
“Tech Times has elabaroted the steps. First, the business owner installs the PayPal Here app on their phone. Second, the app enables the owner to type the sale amount or select the product from their catalog. After selecting the item or specifying the amount, the owner can press the charge button. The available methods of payment will then be displayed on the screen. Instructions on inserting or swiping the payment will also appear on the screen. Then, the EMV cards can be entered into the bottom of the reader.”
Besides making money from chip-card readers, Paypal also charges a 2.7 fee percentage to businesses that use Chip reader. Tech Times reports:
“…2.7 percent, which is a tad less than the 2.75 percent cut rival Square…PayPal Here reader could turn out to be more cost-effective when compared to Square’s EMV card reader…”
Cost effective for business, and universal and accessible in payment options, PayPal is making it easier for customers to buy things and for businesses to sell things. Soon we will probably see the Paypal chip reader in most stores.