PayPal is trying to get small retailers in on the contactless payment surge with the roll out of an NFC-enabled card reader that could give Apple Pay a boost.
The ‘PayPal Here’ card reader accepts contactless payments from Visa, Maestro and MasterCard debit and credit cards as well as Apple Pay, updatiing an earlier version which supported swipe and chip-and-PIN payments.
For small businesses, this means they can now take advantage of consumers embracing contactless. The main draw will be for businesses that process payments on the go or trade seasonally, as they can get the card reader without the tie of monthly fees, instead paying a one off price for the device and then a standard fee for each transaction.
Cameron McLean, managing director for PayPal UK explained: “Contactless payments are taking off in Britain, with over 58 million contactless cards in use and spending on them trebling in 2014. The new PayPal Here card reader is a game changer for businesses wanting to respond to customer demand for ‘tap and go’ payments.”
PayPal’s decision to include Apple Pay could help boost uptake, something that will be welcomed by the tech giant as recent figures suggested the percentage of eligible users who use Apple Pay has dropped from 15.1 per cent to 13.1 per cent between the first and second quarters of this year.
McLean added: “The smallest of businesses can now offer the latest way to pay wherever they trade.It’s the latest example of how PayPal’s innovations in mobile payments are helping British businesses to succeed.”
Major retailers such as Boots, H&M, M&S, New Look, Burger King, and Starbucks were among the first to partner with Apple. However, PayPal Here will open the door for thousands of small or start-up traders to embrace the service and ultimately help the use of contactless payments to grow substantially.