Friday, February 22nd, 2013

PayPal says the swipe based version of PayPal Here has been well received in the US, and it makes sense for it to develop a chip and pin version that can be pitched in Europe and other markets that use this technology.

According to Eden Zoller, principal analyst at Ovum, “The UK is the logical place to start as it is PayPal’s second biggest market outside of the US with some 18 million active users.

“PayPal has taken pains over the PayPal chip and pin device, which was designed and built in the UK and over a year in the making.  But it will come with a price tag and this will need to be competitive given the solution is meant for small businesses. PayPal says this will be the case – it is not looking to make money from the device itself.  Mobile credit card reader solutions appear to address a genuine need in the market - an easy and convenient way for small businesses to accept card payments without having to invest in costly credit/debit card processing equipment. The market for these solutions is becoming increasingly competitive and PayPal Here is not the first of its kind in Europe, where the likes of iZettle, Payleven and mPowa have already launched. But  PayPal has an advantage in being an established, trusted payment provider with a high profile global brand.”     



To arrange an interview with Ovum please contact Jennifer Duraisingam on +61 3 9601 6723 or email [email protected]

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Jointly awarded IIAR Global Analyst of the Year 2012, Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Its research draws upon over 400,000 interviews each year with business and technology, telecoms and sourcing decision-makers, giving Ovum and its clients unparalleled insight, not only into business requirements but also the technology that organizations must support. Ovum is an Informa business.
Jennifer Duraisingam
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