PayPal is to launch a new Chip and PIN device that will allow independent retailers to offer easy credit and debit card transactions.
PayPal Here is run through a smartphone app connected to a card reader and can provide email receipts as well as transaction history. Set to be trialled in the UK this summer before rolling out worldwide, PayPal Here will not have a contract or on-going fees but rather an initial purchase cost for the equipment and a fee for the retailer on each transaction. The cost of the device is expected to be under £100 while transactions fees will be around 3%.
PayPal UK managing director Cameron McLean said the device would open up more transactions to small businesses.
“Small businesses are the lifeblood of the British economy,” he said. “And in tough economic times, they can’t afford to turn away sales. Yet that’s what many are doing because they’ve been unable to find an affordable way of accepting credit and debit card payments, especially for face to face transactions.”
Amit Patel of Belvedere News Food & Wine in Kent said the concept was “great as it would enable more independent retailers to process card transactions which are becoming more and more popular in the store”.