This fee free transaction opportunity is a promotion that the company will run until the end of the year.
Among the latest mobile payments news headlines that are being made is the announcement that has been made by PayPal that it is hoping to attract more businesses to use its POS credit card processing service by offering these transactions for free for the rest of the year.
Transaction fees add up quickly and can cut into the profit of a business, making this type of offer highly appealing.
The announcement from PayPal has raised a number of brows as it has offered free mobile payments card processing by way of its Cash for Registers program until the close of 2013. The hope is that this will be a tremendous incentive to help businesses to make the decision to sign up for this free service. That said, the company is expecting somewhat of a commitment in order to allow the businesses to be able to participate in this promotion.
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To use the new mobile payments system with free processing, businesses must surrender their old POS systems.
Part of the PayPal free processing deal requires businesses to turn in their old existing point of sale systems in order to replace them with any of PayPal’s POS systems, such as Here, or any other that will integrate with the company’s mobile payments technology. When 2013 comes to an end, however, the processing fees will be returning back to normal. That said, for businesses that typically receive a large number of credit card transactions, this could mean a significant savings for the rest of this year.
The PayPal Here mobile payments POS system is designed to run in direct competition with Square and other similar forms of smartphone or tablet based offerings. Companies who sign up for an account will receive a small card reading device so that they are able to process the transactions no matter where they are. The standard rate (not including the free promotion) for PayPal is currently 2.7 percent per transaction. This is just a sliver lower than Square, which charges 2.75 percent.