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16 November 2012

PayPal announces in-store payments in Australia

Retailers will have to pay a fee "on par or a slight premium to credit card prices," PayPal said.

Retail customers can pay without cash or a credit card under a new in-store payment API announced today by PayPal for Australia.

PayPal’s latest move comes as payment companies, banks, telcos and technology companies fight to be consumers’ default mobile digital wallet.

With the new PayPal Here API, customers open the PayPal mobile app and check into the store they are visiting. The store can then see their customers PayPal profiles on their point-of-sale (POS) terminals and charge the customer’s PayPal account by tapping his or her picture.

PayPal said it’s already has signed up several Australian retailers for the service. Sonoma Bakery, Guzman Y Gomez, Glue Store and Crayons will also introduce the in-store payment system, it said.

PayPal charges a merchant service fee for check-in payments similar to credit card fees, a PayPal spokeswoman told Computerworld Australia.

“PayPal’s fees range from a standard rate of 2.4 per cent plus $0.30 per transaction to a minimum of 1.1 per cent plus $0.30 per transaction, which is on par or a slight premium to credit card prices,” she said.


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