This has been a huge week in mobile chip and PIN (w/c 18.02.13). Payleven and iZettle have launched their mobile chip and PIN readers in the UK and Paypal have announced they will follow suit this summer. I covered the Payleven announcement last week so lets take a look at what’s on offer from iZettle and what’s in the pipeline at Paypal.
iZettle Chip and PIN
Up until now iZettle have offered their customers either a swipe and sign or chip and sign card reader. On these devices payments are verified by the customer signing the screen of the merchant’s phone with their finger. If using a Visa card though, additional verification is required on the customer’s smartphone. That’s only possible if the customer has a smartphone and takes additional time.
The chip and PIN solution solves that issue as all major cards are accepted using the card reader alone. Another issue it solves is the ease of reading the card. The chip and sign and swipe and sign readers connect to the mobile device physically, however the chip and PIN reader connects via Bluetooth. That means the lightweight card reader can be handed to the customer while your phone or iPad rests nearby. As before, payments are made using an app on the mobile device.
iZettle have also announced a partnership with Banco Santander. This will facilitate distribution to all their European markets including the UK, Sweden, Norway, Finland, Germany and Spain. iZettle mobile chip and PIN readers are available from their website for £99 + VAT >> iZettle.
iZettle Contatless Card Reader £29 Here (until 31st August 2016)
Paypal Here, currently available in the US, will be available in the UK this summer. The system allows small businesses to accept card payments with a mobile chip and PIN reader and an Android or iOS (Apple) smartphone. Like similar offerings from Payleven and iZettle there will be a one time charge for the chip and PIN reader then the merchant will pay a transaction charge each time. There are no setup or monthly fees. PayPal have indicated the card reader will cost under £100 and transaction charges will be sub 0.3%.
PayPal anticipate many small businesses, seasonal businesses and sole traders will find the mobile chip and PIN readers useful. With 20 million small businesses in Europe currently only accept cash or cheque they are surely right. PayPal are a recognised brand and already have 18 million customers in the UK. This could give them an advantage over the competition and it will be interesting to see what happens. You can register here for info >> Paypal.
Make sure to check back for updates and feel free to use the contact form is you have any questions about chip and PIN machines or merchant accounts.