PayPal claims the tool is ideal for small businesses, service providers and casual sellers allowing them to conveniently make credit card payments and PayPal transactions securely while on the go. It also enables merchants to process, manage and track payments.
The encrypted card reader itself is incredibly lightweight and is currently only compatible with Apple's iPhone, despite plugging into the generic 3.5 mm auxiliary port. However, an Android application is "expected for general release soon" enabling the same functionality for droid users.
The application acts as a mobile point of sale interface, compiling numbers on internal inventory and itemising company-branded invoices which can be distributed via sms or email.
There's no set up costs for the application and card reader with PayPal instead charging a fee per transaction. In the press release footnotes, the pricing is outlined as:
Merchants using PayPal Here will be charged a fee per transaction of 2.4% + 30 cents for swipe transactions, and 2.9% + 30cents for manual key-in and scanned transactions.