PayPal Here launched in the UK

PayPal Here is now available to all businesses in the UK.

We’ve been waiting for PayPal’s Chip and PIN solution for small and medium-sized businesses for ages and at last you can buy it for £99 and start accepting PayPal in any place in the country (assuming of course that you can actually get a mobile phone signal).

The British-designed chip and PIN reader is aimed specifically at businesses that have traditionally relied on cash or cheques – such as cafes, market stall owners, taxi drivers and tradesman. PayPal say that it is a game changer for SMBs, enabling businesses an affordable, easy to use and secure way to accept credit and debit cards or PayPal Check in, meaning businesses don’t have to turn away customers who don’t have enough cash on them or want to pay by card.

PayPal Hereis easy to set up. The first step is to download the free PayPal Here app (available on Android or iPhone), then order the card reader through the app and connect it to a smartphone via Bluetooth – that’s it – businesses can be ready to accept payments straight away.

Whether the business user is a plumber, delivering food, personal trainer or market trader – they are now able to offer customers the flexibility to pay by card anywhere they are trading. PayPal Here also allows businesses to log cash and cheques and send electronic receipts and invoices. Customers can also pay using PayPal Check in, using the PayPal consumer app, on their mobile phones.

Costs

The PayPal Here Chip and PIN card reader is subject to a one-off payment of £99 (including VAT and free delivery) and then a 2.75% transaction fee for every payment accepted with Chip and PIN cards and/or PayPal Check in. A transaction fee of 3.40% plus 20 pence is charged for card payments made by swiping the magnetic stripe or manually keying in the card details. These fees are domestic transactions only, additional charges apply for cross border transactions.

Consumers say “Yes” to plastic

Surprisingly from PayPal, their latest research suggests that we might not be ready for mobile wallets. Their research shows that 72% of people are likely to pay a smaller business with card if card payments are offered and 61% of adults in Britain would prefer paying by card, rather than cash, for amounts lower than £50. The top reasons given for preferring to pay with card among adults in Great Britain who would prefer to pay with debit, credit or pre-paid card are: ease of use (33%), that they always carry a card with them (32%), it is more convenient (31%) and that it is safer to pay with card (29%).

Of course the great thing about PayPal Here is that you’re giving the option for those with a PayPal account to pay with PayPal Check in, and for those without they can continue to use their trusty plastic as they’ve always done.

If you sell at trade shows or market stalls, accepting plastic might get you those higher value sales from customers wanting to purchase but without a cheque book in their pocket or large amounts of cash in their pockets.