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Secure Transactions News

Paypal resets its digital wallet

Thursday 22 March 2012

Paypal says “This marks the first time in our 13-year history that we’ve completely redesigned and re-architected the PayPal wallet to make money work better in today’s rapidly evolving, multi-channel shopping environment.”

Paypal positions its wallet as digital – not just mobile, digital – it lets consumers do things with their money that have never been possible before. And there’s no finite set of features, because the digital wallet can evolve with the pace of innovation, allowing us to incorporate new functionality as consumer demands shift.

PayPal Digital Wallet allows to:

  • Separate the purchase from the payment: Buy something in a store, take it home and decide later how you want to pay for it. PayPal is the only wallet that will offer a 5-7 day grace period for consumers to change their minds.
  • Switch from one funding source to another
  • Decide to pay over time in installments
  • Apply different sources of value (gift cards, airline miles, loyalty points, etc.)
  • Personal Lists: Search for items, compare prices and create lists of things you want to buy for a variety of situations.
  • Found Money: Your wallet will find deals and coupons for items on your personal lists once you’re in the store. Forgot about that coupon you were saving? The PayPal wallet won’t.
  • Spending Rules. Create specific “set asides” like travel funds, set rules by purchase amount, tie specific payment instruments to specific merchants – all in your wallet, without setting up any new bank accounts or opening any new credit cards.


A result of this redevelopment is “Here”. PayPal announced PayPal Here, which the company positions as “the world’s first global mobile payments solution that allows small businesses to accept almost any form of payment”. PayPal Here service includes a free app and fully encrypted thumb-sized card reader, which turns any iPhone, and soon Android smartphone, into a mobile payment solution. PayPal says that with PayPal Here, small businesses, service providers and casual sellers can send invoices or accept debit and credit cards, checks and PayPal using one simple product.

With PayPal Here merchants can accept payments by swiping cards in the card reader, scanning cards and checks using their phone cameras, or manually entering card information into the app. They can also send an invoice and set payment terms directly from the app. And, of course, they can accept PayPal payments in a brand new way.

PayPal Here offers a fee structure with no monthly account or set-up fees. Merchants pay a simple flat rate of 2.7% for card swipes and PayPal payments. In addition, every PayPal Here merchant will receive a business debit card for quick access to cash and 1% cash-back on eligible purchases. If merchants use the debit card for purchases, their fees effectively come down to 1.7%. US businesses can join the wait list to get a free PayPal Here card reader.

PayPal also released the latest version of its PayPal Mobile app for iPhone, a consumer app that complements PayPal Here. PayPal users will be able to use the “Local” feature on the PayPal app to find nearby businesses that accept PayPal Here. Once the customer is ready to pay, they can notify the merchant by a quick tap on their mobile phone. Merchants can use PayPal Here to accept the payment by simply referencing the shopper’s name and picture – no wallet needed.

Paypal insists on its fraud management capabilities, as well as 24x7 live customer support. PayPal has more than 100 million customers around the globe and 13 years of experience providing secure payment products that have helped millions of merchants grow their businesses globally.

The PayPal Here card reader and merchant app for iPhone are both available as of now exclusively to select merchants in the United States, Canada, Australia and Hong Kong. It will be generally available in those countries next month. The Android version of the PayPal Here merchant app will also be available at that time. PayPal will announce the availability of PayPal Here in more countries soon.