PayPal introduces Here; takes on Square in mobile payments

PayPal introduces Here; takes on Square in mobile payments

Summary: David vs. the Goliath: PayPal Here is a mobile payments system that will allow small businesses to accept payments through a smartphone. It's a direct competitor to Square.


PayPal today announced Here, a mobile payments system that will allow small businesses to accept payments through a smartphone.

Much like Twitter co-founder Jack Dorsey's service Square, PayPal Here accepts debit and credit cards via an encrypted, thumb-sized card reader. It also can use a phone's camera to scan and process cards or checks.

The concept is simple: customers get to use their preferred mode of payment; merchants get to accept exactly that, plus invoice directly from a mobile app; PayPal makes money (2.7 percent; Square is 2.75 percent) by using its traditional web-based service as the anchor.

PayPal is billing their service as the world's first global mobile payments system, a dig at the more popular Square, which as a startup does not have the scale to match. It will be available on Apple iOS and Google Android devices.

There's no question that PayPal has significant weight to throw around in this arena; what must be proven is merchants' willingness to adopt the device. Based on Square's reception, retailers seem to have interest in the technology -- the question is how many dongles (and accounts) they care to have on the way to generating revenue in unlikely places.

This post originally appeared on SmartPlanet's Smart Takes blog.

More SmartPlanet stories about mobile payments:

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Topics: Enterprise Software, Banking, Mobility

Andrew Nusca

About Andrew Nusca

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. During his tenure, he was the editor of SmartPlanet, ZDNet's sister site about innovation.

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  • Danger Will Robinson!

    The problem with this mobile solution is that its from Paypal.
  • Run away From Paypal

    Run, Don't walk, RUN AWAY FROM Paypal. Paypal is only in business for itself. For all it's guarantees and promises, paypal only protects it's bottom line. Paypal has frozen $10,000 for one client of mine, for 6 months. Reason : 'we reserve the right to do that.' No reason given, just that they can do it. Paypal tried to freeze another client's $5,600, for no reason. Except that the money came directly from the clients bank account, and they called a lawyer.
    a final warning. STAY AWAY FROM PAYPAL
    • Recently?

      Was this recently, or when PayPal first came out?

      PayPal had a lot of issues in their first year or so, but I thought they had been ironed out.
  • Because . . .

    Because I want to sign with my thumb and have my receipt sent to my phone number.

  • their "Here" app is not in the Android Market

    I just looked in the Android market. There is a PayPal app but (1) no mention is made of a reader (2) the word "Here" is not mentioned.

    Is what's in the Android Market an older app?

    I'm confuzzled.

    Terry Thomas
    Atlanta, Georgia USA