PayPal Here to launch in Singapore later this year; competes head-on with Swiff
The idea originated from Square, a US-company founded by Twitter creator Jack Dorsey.
PayPal’s plans to expand its service to Singapore was made known shortly after Swiff held their launch last Thursday.
The company has touted PayPal Here as different from Swiff in one fundamental way.
While Swiff requires merchants to work with their bank and even third-party mobile POS providers to implement their system into business operations, PayPal Here needs only a smartphone, a free-of-charge card reader, and the free mobile app.
In other words, freelancers and individuals can start using PayPal Here to conduct transactions right away, while Swiff is only available to business establishments like restaurants and shops at the moment.
Swiff has promised, however, that peer-to-peer transactions are coming soon, so PayPal Here’s advantage might already be moot by the time it arrives in Singapore.
That’s not the only advantage PayPal has though. As it is an established brand name with a large presence globally, it has the benefit of trust and scale, something that Swiff will have to try very hard to build.
Also, Swiff’s decision to work through the merchant banks to sell their products could be a double-edged sword. While this approach has the potential to scale quicker than approaching merchants individually, and it mitigates the trust disadvantage, we don’t know how committed banks are to promoting Swiff.
According to Boon Teck Tan, business and operations manager at Kido Tech, a distributor of mobile POS systems, Swiff’s transaction rates, charged through its partner HSBC Bank, are in fact costlier than traditional POS systems for high volume merchants.
“I believe high volume merchants can get preferred rates that go down to between 1.2 and 1.5 percent, while Swiff’s rates are from 2.5 to 3.7 percent,” he says, “this difference could account for tens or even hundred of thousand dollars for the big merchants annually.”
In addition, HSBC charges a S$500 annual fee to certain merchants, according to Boon Teck.
However, Swiff has declined to publicly reveal its rates, so it’s unknown what kind of merchant the above rates apply to. But from what we know, it seems that big merchants are less likely to adopt Swiff’s services, which is just as well since Swiff is actually designed with smaller establishments in mind.
PayPal Here charges a transaction fee of 2.7 percent, but it does not have an annual fee.
Boon Teck contends that HSBC’s rates for Swiff could in fact be brought down further, but the risk-adverse nature of the banks does not allow for it.
“No one wants to be the first to push the envelop of the banking regulations,” he says.
As long as the banks have much invested large merchants and the traditional POS business, they are unlikely to rock the boat by disrupting the electronic payments industry. liens partenaires : Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com http://www.addictgroup.fr/portfolio/caisse-tablette/ http://www.addictgroup.fr/portfolio/mpos/
The company has touted PayPal Here as different from Swiff in one fundamental way.
While Swiff requires merchants to work with their bank and even third-party mobile POS providers to implement their system into business operations, PayPal Here needs only a smartphone, a free-of-charge card reader, and the free mobile app.
In other words, freelancers and individuals can start using PayPal Here to conduct transactions right away, while Swiff is only available to business establishments like restaurants and shops at the moment.
Swiff has promised, however, that peer-to-peer transactions are coming soon, so PayPal Here’s advantage might already be moot by the time it arrives in Singapore.
That’s not the only advantage PayPal has though. As it is an established brand name with a large presence globally, it has the benefit of trust and scale, something that Swiff will have to try very hard to build.
Also, Swiff’s decision to work through the merchant banks to sell their products could be a double-edged sword. While this approach has the potential to scale quicker than approaching merchants individually, and it mitigates the trust disadvantage, we don’t know how committed banks are to promoting Swiff.
According to Boon Teck Tan, business and operations manager at Kido Tech, a distributor of mobile POS systems, Swiff’s transaction rates, charged through its partner HSBC Bank, are in fact costlier than traditional POS systems for high volume merchants.
“I believe high volume merchants can get preferred rates that go down to between 1.2 and 1.5 percent, while Swiff’s rates are from 2.5 to 3.7 percent,” he says, “this difference could account for tens or even hundred of thousand dollars for the big merchants annually.”
In addition, HSBC charges a S$500 annual fee to certain merchants, according to Boon Teck.
However, Swiff has declined to publicly reveal its rates, so it’s unknown what kind of merchant the above rates apply to. But from what we know, it seems that big merchants are less likely to adopt Swiff’s services, which is just as well since Swiff is actually designed with smaller establishments in mind.
PayPal Here charges a transaction fee of 2.7 percent, but it does not have an annual fee.
Boon Teck contends that HSBC’s rates for Swiff could in fact be brought down further, but the risk-adverse nature of the banks does not allow for it.
“No one wants to be the first to push the envelop of the banking regulations,” he says.
As long as the banks have much invested large merchants and the traditional POS business, they are unlikely to rock the boat by disrupting the electronic payments industry. liens partenaires : Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com Restotimes.com http://www.addictgroup.fr/portfolio/caisse-tablette/ http://www.addictgroup.fr/portfolio/mpos/
posted by Hugues Courcier at 9:51 AM
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