A couple of QVM market traders have become early adopters of
the PayPal mobile EFTPOS system.
PayPal Here involves the use of a smartphone or iPad
connected wirelessly to a special PayPal card reader. The physical sales
process involves entering the transaction details on your smartphone or iPad
and then handing the card reader to your customer who inserts the card, enters
their pin number, and presses ok. The completed transaction shows up on your
smartphone or iPad.
Why adopt the PayPal system? Well, it comes down to
economics and it is a matter of doing the sums for your business. Current users
of the mobile EFTPOS facilities provided by banks will be familiar with the
monthly minimum $45-50 fees. Typically this is made up of a $25 equipment fee
plus a minimum $20 service fee which is part of the percentage rate charged on
transactions (usually 1-1.5%).
We understand that PayPal is charging a flat 1.95% for chip
and pin transactions, and 2.95% for swipe transactions – chip and pin is
cheaper because it is more secure. There is an upfront fee of $99 for the card
reader but we understand that the flat percentage fee is the only other fee
involved. You may be involved in some increased data usage on your smartphone
or iPad.
Our early adopters are actually waiting on the release of
the latest app from PayPal on 28th May before they start using the
system but we will keep in touch with them and report on progress next weekend.
