eBay's PayPal is on the move. About a year after launching its payment-processing reader in the U.S. and a handful of other markets, the company is finally introducing the service in Europe.
Cracking into the European market was never going to be easy. That's because most credit and debit cards there use a chip-and-pin type of authentication, which is more complex than the swipe-based cards that U.S. shoppers have. Stateside, for small merchants that want to accept those swipe cards, eBay rolled out its PayPal Here product last March. That product is simply an attachment that plugs into mobile devices, allowing users to swipe credit cards and accept payments right from their smartphones.
But yesterday the company introduced its European version of PayPal Here, calling it a "game-changing product" in mobile payments. Through the combination of an app and a separate PIN device, eBay thinks it has an elegant solution to the technological challenges that have kept other mobile payment operators, like Square, out of the European market so far.
For eBay, this is an important step in its strategy to bring PayPal out of its online home and into the much larger world of physical transactions. The PayPal service already boasts 122 million active accounts. Now eBay's challenge is to get those customers to use PayPal for offline transactions, too. To that end, the company has been busy getting major retailers on board. PayPal is now accepted at over 18,000 locations from more than 20 national retailers, including Home Depot and American Eagle Outfitters. That's far from blanket coverage, but it's a start.
According to Reuters, eBay plans to charge a "nominal" fee for the European version of the PayPal Here device. And as for processing fees, the company expects to charge about 2.75% on each transaction, similar to what it charges small businesses in the U.S.
The amount of data we store every year is growing by a mind-boggling 60% annually! To make sense of this trend and pick out a winner, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts but still has plenty of room left to run. To get instant access to the name of this company transforming the IT industry, click here -- it's free.
The article PayPal's European Vacation originally appeared on Fool.com.
Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends eBay. The Motley Fool owns shares of eBay. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.