PayPal Here merchant signups eclipse 200K in first month
More than 200,000 merchants have signed up for the new PayPal Here since the mobile payment processing system launched five weeks ago, eBay CEO John Donahoe announced Wednesday.
PayPal Here processes credit and debit transaction through a dongle attached to a smartphone or tablet.
PayPal Here enables small businesses and other users to process credit and debit transactions by swiping the card through a small, triangle-shaped dongle that attaches to their smartphone or tablet. Speaking on eBay's first quarter 2012 earnings call, Donahoe credited PayPal Here's international reach for driving growth: "Unlike other solutions in the market, it's global--available in the U.S., Canada, Australia and Hong Kong at launch," he said, adding that the service will be "widely available" by the end of the second quarter.
PayPal Here launched in mid-March, signing up an average of 1,000 users per hour during its first day of availability. The service charges merchants a flat rate of 2.7 percent per transaction, a .05 percent savings over rival Square's mobile payment offering. Square announced in December 2011 that more than a million merchants nationwide are using its service, up from 800,000 two months earlier. Square now processes $11 million in transactions each day, up from $4 million per day in July 2011.
eBay-owned PayPal handled more than $4 billion in mobile payments in 2011 and is expected to top $7 billion in total mobile payment volume this year. In addition to PayPal Here, the company is trialing mobile wallet services across more than 2,000 Home Depot stores in the U.S., enabling consumers to pay for items at checkout via mobile device or a special PayPal card. PayPal also has partnered with regional convenience store chain Cumberland Farms to introduce SmartPay, a mobile application enabling motorists to pay for gasoline from the seat of their car.
eBay reported first quarter net income of $570 million, a year-over-year increase of 20 percent. The company said revenue climbed 29 percent to $3.3 billion.
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