PayPal Unveils Mobile Payment System 99
angry tapir writes "PayPal is targeting small businesses, service providers, and casual sellers on the move with its new PayPal Here service, which allows vendors to process a variety of payments including checks and cards using their mobile phones. The new service includes a free app and encrypted thumb-sized card reader, which allows merchants with an iPhone, and later Android smartphones, to process payments."
WTH? (Score:3, Insightful)
First question:
Would you stick your card into that device and/or type you PIN into a random Android mobile?
I think that should tell you everything you need to know about how much that will get used.
How do they expect.... (Score:5, Insightful)
To compete with Square? They are already established and don't have a reputation for taking everything that someone has in their account on a whim.
The internet is full of "paypal stole all my money" stories.
Re:WTH? (Score:5, Insightful)
Yes, a lot of people do this all the time. I have been using SQUARE on my iphone for a year now to do this for my small business.
Re:WTH? (Score:5, Insightful)
So you won't let the waitress swipe your card, but you'll let her take it into another room for several minutes?
Re:Why hasn't PayPal been innovated out of existen (Score:5, Insightful)
Because they don't abuse customers in general. They abuse sellers. The regular users who are paying are left alone, and thus the service is popular. Sellers don't really have a choice, and just have to put up with whatever bullshit PayPal comes up.
Re:WTH? (Score:4, Insightful)
Mod this parent up. Posting as AC on purpose. I'll add that in a dispute over a debit charge, the problem as the cardholder is that you are fighting with your bank (debit card issuer) to get your money back.
When disputing a credit charge, you are helping the bank (credit card issuer) that "loaned" you the money get *their* money back. With debit, the bank is not overly encouraged to spend a lot of resources on helping you get your money back as it isn't their money that was defrauded since there is no profit in it and the risk is that you (one customer) will leave for another bank, and there are barriers (hassle) to you if you do this.
With a credit card, the risk is they will lose you as a customer (you will use some other form of payment) and lose their profit (interest and transaction interchange and data mining value - spend patterns, market analysis, marketing other products and services, etc.).
The bottom line is that the security focus of the industry isn't to protect the cardholder from fraud, but the banks in protecting their revenue streams.