Paypal set to launch new smartphone payment tool

PayPal, the online banking company that is owned by eBay, will soon launch a new tool that is going to help small business owners and traders across the UK process their payments with the simple use of a smartphone.

The device is called the PayPal Here and was first launched in the US last year. It is simply a small chip & PIN payments solution that allows vendors to charge customers credit cards with their mobile phones.

This will allow businessman and women that work in restaurants, markets, out of their homes, or even in taxies to accept both debit and credit cards so that they do not have to restrict themselves to only taking cheque or cash.

The device is about the same size as a mobile phone and synchs with the smartphone when it is turned on. It has a small slot in the bottom that a credit card can be inserted into for the swipe bar to read and it takes about thirty seconds to complete a transaction in all.

The PayPal Here is due to launch in the UK this summer but does not have a price tag set on it yet. Analysts have already warned that if it is to be successful it will have to keep its processing fees pretty low.

PayPal has touted the system as a game changer for many small businesses since it will let them in on the credit and debit market without forcing them to pay the full price that a chip & PIN system usually costs. It also offers a great mobile option for business services that take place in markets or in taxis that do not have access to one stationary port to complete all of their business transactions.