Last week on
#TechTuesdays we reviewed the mobile payment/wallet services of a number of companies currently in the field and entering the field shortly, ranging from Apple with their Apple Pay service, to Google with their Android Pay service, to Samsung with their, well, “Samsung Pay” service (it seems expenses
are spared when it comes to naming conventions in this field.) But all of those services focus on making payments. What’s some mature technology available right now that small businesses can utilize to
accept payments anywhere, on-the-fly?
Glad you asked! Or glad you allowed us to ask on your behalf, at least. There are two big players currently in the field of mobile payments on this front:
Square with their mobile card reader and
PayPal via
PayPal Here. There are other rival readers that represent much smaller segments of the market, but for our purposes today, it’s Square vs PayPal Here. Let’s take a look at both and how they compare, shall we?
Quick Comparison: Square vs PayPal Here
Here’s a quick comparison checklist of the major features of Square and PayPal Here:
Square
Swiped Card Fee: 2.75%
Manually Entered Transaction Fee: 3.5% fee plus a flat additional rate of $0.15
Additional Fees: None
Card reader: Free
Additional perks: None
. . . . . . . . . . . . .
PayPal Here
Swiped Card Fee: 2.7%
Manually Entered Transaction Fee: 3.5% fee plus a flat additional rate of $0.15
Additional Fees: 1% cross-border fee when swiping non-U.S.-based cards
Card reader: Free
Additional perks: Chance to earn 1% cash back on all your signed purchases through PayPal’s ecosystem
Square
Square’s been around for a good while and is the most popular name in mobile card readers. A minimalist app, Square Register, is paired with the small, square hardware dongle that attaches to your mobile phone via its headphone jack. Square keeps it simple with their fees: You’re charged a straight-up
2.75% processing fee no matter which card you swipe. When you compare this number to PayPal Here and related services, it’s a tiny bit higher, but there are no hidden fees or possible permutations involved here. You’re looking at a 2.75% fee no matter what, and this can be reassuring to those of us who like to know exactly what we are getting into. No fear of the unknown with Square. Note though that if you forego swiping and decide to manually input any transaction via the app, you do get a different result. Under that scenario, you’ll be paying a 3.5% fee plus a flat additional rate of $0.15.
Square provides email and Twitter customer support at all times, as well as live phone support Monday through Friday, 6 a.m. to 6 p.m. Pacific Time. There are no commitments or long-term contracts when signing up to use Square. Oh, and the cost of Square’s custom hardware dongle/dock for accepting payments? When you sign up to use the service, Square will send you the Square Reader through the mail for free. Just plug it into your phone’s headphone jack upon receipt and you’re good to go.
PayPal Here
The other half of our Square vs PayPal Here battle involves a juggernaut in the mobile payment space: PayPal. PayPal Here also features a minimalist-looking app and no long-term commitments and contracts, and card swiping is performed via a similarly-sized hardware attachment that plugs directly into your phone via its headphone jack. So, where do the differences come in?
PayPal is a huge player in online business due to their established electronic payment transfer service and associated debit and credit cards. (Ed. note: We have and use a PayPal Debit Card.) PayPal has expanded upon these services — and tied into them — by offering their PayPal Here hardware reader for mobile phones, following in Square’s footsteps.
The first differentiating feature for PayPal Here is via their mobile app. This app offers a GPS-based service that allows potential local buyers to “see,” search and be guided to your business based upon your broadcasted ability to accept PayPal payments and credit card-swipe payments via the PayPal Here reader. The app allows for simultaneous acceptance of card-based purchases via PayPal Here as well as any online transaction via PayPal’s established service, should the purchaser choose to go that route. A lot of versatility here.
The other differences come via fees, and it’s here where PayPal Here is shown in a slightly less favorable light. Accepting a card results in a flat-rate of just
2.7%, no matter the card type. However, this rate doesn’t apply when swiping non-U.S.-based cards, which will result in an additional 1% cross-border fee, so there’s a little variation there. Like Square, you’ll be paying a 3.5% fee plus a flat additional rate of $0.15 whenever you opt to manually input a transaction, too.
PayPal also offers a suite of standard services when you sign up to use their reader. It’s important to note that PayPal Here’s customer service is part of their overarching PayPal customer service, so if you’ve experienced any PayPal customer service previously, you know exactly what to expect. Live customer support is available 4 a.m. to 10 p.m. Pacific Time on weekdays, and 6 a.m. to 8 p.m. Pacific Time during weekends. Also offered is their “Quick Cash” feature, ensuring that you have immediate access to your money no matter where you are so long as you opt to carry a PayPal Debit Card, and there’s also the addition of a perk anyone carrying a credit card is familiar with: You’ll receive 1% cash back on all your signed purchases.
Oh, and the PayPal Here reader? Free after signing up, just like Square.
Conclusion
Both these services offer very similar setups, but there are a few fee variations and ecosystem perks to keep in mind that separate the offerings. A lot of your choice may hinge on your previous experience with PayPal, if any, as the PayPal Here reader is intimately tied into PayPal’s overall ecosystem and customer support infrastructure.
No matter which of these services you may choose, we hope and trust it’ll prove fruitful for your business endeavor. Until next time on #TechTuesdays, have a great one!
