PayPal Here signs up 1,000 users per hour on launch day
The new PayPal Here mobile payment system signed up an average of 1,000 users per hour during its first day of availability, PayPal reports.
PayPal Here--unveiled last week--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. Users also can access their mobile device's camera to scan and process cards and checks. PayPal Here charges merchants a flat rate of 2.7 percent per transaction, a .05 percent savings over rival Square's mobile payment offering.
Given that PayPal is leveraging an established brand and entering an existing market segment staked out by competitors like Square and Intuit, it is difficult to quantify the PayPal Here signup numbers. Square has not reported single-day signup metrics, for example, but announced in December 2011 that more than a million merchants nationwide are using its service, up from 800,000 two months earlier. The Square reader is sold across more than 9,000 Apple, Best Buy, RadioShack, Target and Walmart retail locations, and the company processes more than $4 billion in payments each year.
eBay-owned PayPal boasts more than 104 million active users in 190 countries, with more than 8 million merchant partners. PayPal handled more than $4 billion in mobile payments in 2011--the company is expected to top $7 billion in mobile payment volume this year, according to eBay CEO John Donahoe.
PayPal is currently testing 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 first revealed its brick-and-mortar payment plans in September 2011, promising to introduce digital commerce solutions optimized across all devices, not just mobile phones, and encompassing funding options including cash, credit and installments. In addition to mobile and point-of-sale payments, PayPal will launch geo-targeted mobile advertising campaigns, barcode scanning tools and real-time inventory data.
- read this PayPal Blog entry
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