PayPal Launches Mobile Payment Solution in Australia

Online payments provider PayPal has launched a mobile payment solution in Australian that allows small businesses to accept credit or debit card payments via their smartphones.

PayPal comprises of a mobile application and a lightweight encrypted card reader that attaches to a smartphone and turns it into a mobile card reader.

The device, which is a direct rival to what is offered by the likes of Square, has also been launched in Hong Kong, the United States and Canada, with further rollouts will follow in the Asia-Pacific and Europe.

The launch of PayPal Here in Australia and other regions marks a further expansion by the dominant into online payment processor into the physical mobile payments market and will also let it compete with banks and credit card companies

The volume of all types of mobile payments is expected to top $US200 billion by 2015, up from $US16 billion in 2010.

PayPal, which is owned by eBay Inc., will take a 2.7 per cent cut for each credit card and PayPal transaction, Square charges 2.75 per cent per transaction.