PayPal Targeting Small Retailers to Use New System in Stores

Image: PayPal Targeting Small Retailers to Use New System in Stores

Wednesday, 15 May 2013 11:42 AM

By Dan Weil

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eBay's PayPal unit is broadening its marketing effort to small businesses.

It announced a plan Tuesday to convince small retailers to dump their cash registers in favor of iPads, card swipers and modern printers, The Wall Street Journal reports, and instead use a system that goes through PayPal to accept many payments for goods and services.

In exchange for jettisoning their cash registers, PayPal President David Marcus said the company would finance the business' credit card processing for the remainder of the year.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

Businesses pay a fee to credit card companies for each transaction that takes place with a card. Businesses must pay $1,200 to $1,500 to switch from cash registers to the new-fangled systems, Marcus said.

“We are accelerating the inevitable acceptance of payment systems like PayPal,” he told The Journal.

Businesses won't have to use PayPal for all of their sales, but the special offer is only good to businesses switching to a system that already includes PayPal, such as Erply, Leaf and Vend.

PayPal has been putting an emphasis on growing its presence in the bricks-and-mortar arena to add on to its dominance online.

As of January, some of the retailers that are already accepting PayPal in their stores include:
Famous Footwear, Dollar General, RadioShack, Abercrombie & Fitch, Barnes & Noble, Foot Locker, Home Depot, Jamba Juice, JC Penney and Toys “R” Us, according to the Silicon Valley Business Journal.

Morningstar analyst R.J. Hottovy thinks highly of PayPal and its parent.

"PayPal's role as a leading online payment standard and emergent mobile presence, new innovations in the Marketplaces segment, and complementary acquisitions have reshaped eBay into a major e-commerce player for years to come," he writes on Morningstar.com.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

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