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PayPal unveils Square competitor 'PayPal Here'
Small businesses that are using PayPal to process credit cards but considering the Square service are in luck -- PayPal today unveiled a competitor to Square called "PayPal Here". Like Square, the new service comes with a free card reader dongle. In this case, the card reader has been designed with a stabilizing "wing" that makes it much easier to swipe a credit card. PayPal notes that the reader comes with a free companion PayPal Here app that isn't in the App Store as of the time of publication. The iPhone or iPad that is used with the card reader needn't be online -- apparently the card reader can be used offline as well. The merchant simply needs to tap in an amount, then hand the phone or iPad to the customer. The buyer can add a tip, sign, and request a method of getting a receipt. If the merchant doesn't have the card reader with him/her, the app has a Scan Card feature that uses the device's camera to read the credit card number -- the merchant still needs to enter the customer's CVV and postal code. Scan Card also works with debit cards and checks, and the app can also be used to track cash transactions. Both the card reader and app offer encryption, and PayPal will charge merchants a flat 2.7 percent fee for the service. If you apply the income towards your PayPal debit card, which offers a 1 percent rebate on all purchases, your effective rate is 1.7 percent. That's a rate that Square can't currently beat. PayPal is also touting immediate access to funds, while Square has a built-in one-day delay. The service is being rolled out to a few thousand PayPal merchants in the U.S., Hong Kong, and Australia today, and should be available for everyone else in a few weeks. You can sign up to be notified of the availability of the app and readers on the PayPal website.
PayPal Here mobile card reader: it's like Square, but with way more frozen accounts
Hear that? That's the sound of coins hitting the mental floor at a breakneck pace, and if PayPal's meteoric success is any indication of how it'll do in mobile... well, stockholders should be pleased. Nearly three years after first hearing of Jack Dorsey's Square (formerly 'Squirrel') project, the most hated division of eBay is coming out with a rival. President and CEO of eBay John Donahoe took the wraps off of the device at Ghirardelli Square in San Francisco today, with an aim to bring PayPal to "merchants in the offline world." The plastic triangle module plays a familiar role: pop it into an iPhone, load up an app and swipe until you just can't sell anything else. We're hearing that PayPal will charge merchants 2.7 percent (just 0.05 percent less than Square), but further details -- and even the thing's name -- are still developing.As much as we jest about PayPal's polarizing nature, we've been victim to one too many unjustified account freezes to become overly joyous here, but we won't kvetch about a little competition. Here's hoping we see rates and fees on the decline thanks to another major player stepping up to bat, but something tells us those kinds of dreams are dreamt only by fools. That aside, the fact that famed designer Yves Behar (profiled here on The Engadget Show) and Fuseproject were tapped to engineer it gets a major thumbs-up from us.Update: Looks like it'll go by the name Here. PayPal Here. Moreover, the hardware and app will be gratis, and shipments will begin to go out in the US, Canada, Hong Kong, and Australia today. Everyone else will need to sit tight for a few weeks, and we're still digging for information on compatibility beyond the iPhone.Update 2: Look like Android support will be here at launch, but iOS devices will need to run iOS 4.0 or higher.
PayPal's Digital Wallet lets you decide how you empty yours (video)
PayPal has been helping us pay for those impulse purchases for a long time, but now its forthcoming Digital Wallet could see it popping up on our bank statements a whole lot more. Speaking with eBay Ink, PayPal's Sam Shrauger gave a quick demo of some of the new features. As well as the regular payment handling, you'll be able to register gift vouchers, coupons, loyalty points and store credit cards all under one account. This sounds tidy, but more interesting is the ability to change how you pay for something (say, from credit to debit card) up to seven days after the fact. If you want to keep those big purchases on the Amex, that's no problem either, with configurable rules letting you assign different cards to different spending situations, including setting your own custom payment plans. It's not all about buying either, with savings also getting the digital treatment, that's if you haven't doled it all out on gadget rarities. The service is expected to land in May, in the meantime see the new features via the videos after the break.
PayPal may go after Square's mobile payments
PayPal is planning to take on Square with a new payment processing dongle, says a report from GigaOM. The dongle will supposedly tie into PayPal's already robust payment processing system and will be targeted towards small businesses. Smaller companies would be able to use this system to process credit card transaction at the office or in the field. PayPal says its technology will become "the future of commerce for small businesses." The eBay subsidiary is expected to unveil its new mobile payment system on Thursday.
eBay, PayPal, Opera announce mobile payment innovations at MWC
Nope, "Grease" isn't the word, it's "Mobile Payments," or at least it would be if it wasn't technically two words. Still, eBay, PayPal and Opera have used the fiesta atmosphere at MWC to promote their services, as you do. eBay's partnered with UK carrier Three, which will now pre-install the auction site's apps on all the Android phones it sells. It's also teamed up with hotelier Yotel and Iberian ticketing service Entradas to offer quick-and-easy payments for the same. Meanwhile, Opera has launched the Opera Payment Exchange (OPX), aiming to democratize the space by making secure commerce available on any form of feature phone, rather than just top-level smartphones. Finally, PayPal has rolled out a new payments system to Home Depot nationwide. Every branch will be equipped to handle payments from the online agency using a card or cellphone and PIN combination. After the break we've got the details for all three, suffice to say it won't be long before you can spend every penny you've earned without having to get out of bed.
Battle.net Balance boots up
Diablo III may not be out yet, but that's no good reason not to be filling up your virtual coffers for the day that it hits the streets! Blizzard has thrown the switch on Battle.net Balance, activating its online payment service that allows players to charge up their Battle.net funds to purchase various Blizzard game services. The new Balance system can be used to buy World of Warcraft game time (although you can't set up a recurring subscription with it), in-game pets and mounts, paid account services in WoW such as character transfers, digital copies of Blizzard titles, and the opportunity to buy and sell items on Diablo III's auction house. It's important to note that not all regions will be able to participate in Diablo III's real-money transactions, however. Once real money has been funneled into Battle.net Balance, it cannot be converted back into cash. Blizzard does state that in some regions, players will have an option to get cash back on Diablo III auction sales via PayPal. The company also mentioned that there is a cap on how much any player can have in his or her Balance account and that there are potentially region-specific expiration dates for Balance funds.
PayPal's Scott Thompson becomes CEO of Yahoo; signing bonus probably stuck in a frozen account
Think you're having a good day? Try being Tim Morse, who was just relieved of the seemingly impossible task known as "being the Chief Executive Officer of Yahoo." After years of turmoil and bouts of bickering with Alibaba, Yahoo has just appointed Scott Thompson as its new CEO -- marking the introduction of a new year with the introduction of a new head honcho. Mr. Morse, who was standing in as interim CEO, will resume his role as Chief Financial Officer, and Thompson will become a member of the company's Board of Directors starting January 9th. Scott served most recently as President of PayPal, where -- so far as we can tell -- he did nothing to remove the draconian 'dispute' process that has jaded so many souls belonging to slighted eBayers. Bitterness aside, his primary focus in his new role will be to "continue the strategic review process to identify the best approaches for the company and its shareholders," and the release makes clear that Yahoo is "considering a wide range of opportunities for the company's business, as well as specific investments or dispositions of assets." Sounds fun, no?
Blizzard's Battle.net Balance boasts big business
Choo choo -- the Blizzard Micotransactrain is leaving the station! Whether or not you're aboard with Blizzard's increasing fixation on monetizing all aspects of its games, this train is certainly picking up steam. Its next station is called Battle.net Balance, and with it comes a whole new paradigm for the Blizzard empire. (Many apologies for using the word "paradigm.") In effect, Battle.net Balance is a virtual wallet where players can purchase -- or "charge up" according to Blizzard's parlance -- points to then spend on items and services in World of Warcraft, Diablo III, and elsewhere. Diablo III players who earn Battle.net currency in-game can save those points through the service to spend later. The system can also be used to pay for WoW gametime. However, the system comes with an important caveat: Once you've converted real-world money into Battle.net Balance, there's no getting it back as cash. So if you've got plans to make a living playing Diablo III, you might want to think again (although "certain regions" will be able to cash out via PayPal). Battle.net Balance is heading our way in the near future, and if this affects your game, you might be interested to read the informative FAQ that goes into more detail.
PayPal Facebook app lets you send money and greetings to friends, only takes 2.9-percent cut of your 'free' e-card
Well, this certainly seems like a no-brainer for PayPal. The company just launched a Facebook app that lets you send money to anyone on your friends list, with the usual list of terms and conditions in tow. After logging into Facebook and authorizing the app, you'll be able to use PayPal to transfer funds to individuals that you're connected with (who also have PayPal accounts, of course), adding a layer of security to the notoriously fraud-laden online payment service. Payments are free to send and receive, but only if they're funded using a bank account with both parties in the U.S. Want to use a credit or debit card instead? PayPal will collect 2.9 percent (either from the sender or recipient), with a 30-cent processing fee to boot. And if you're sending funds abroad, fees range from 0.5 to 3.9 percent, depending on a variety of factors. A rather comprehensive collection of e-cards helps soften the blow if a fee applies, and includes selections for just about every occasion. Fourth of July coming up? Let's top up that fireworks fund. So dig up those account and routing numbers and get ready to stick some virtual cash in a virtual card -- just one week 'til Thanksgiving!
PayPal adds NFC payments to Android app, lets you P2P your lunch money
It's another nail in the coffin of expensive, dirty, smelly physical cash and coins. PayPal has released the 3.0 version of its Android app and, through that, users can directly exchange money from one NFC-equipped phone to another. Just add the Request Money widget to your (probably already rather cluttered) desktop, type in an amount, then pick up your Nexus S and do a little fist bump with your best bro's celly -- assuming said bro has a similarly near field communication-equipped Android device. Of course, you can still use Bump to exchange cash if you like, but neither that nor NFC will ensure your friend will ever actually pay you back. Maybe that's something Bluetooth 4.0 can manage.
PayPal to open NYC pop-up store next month, showcase new mobile payment services
The idea of a physical PayPal store may seem somewhat counterintuitive, but that's exactly what the company is planning to open next month, in Manhattan. As TechCrunch recently revealed, the forthcoming pop-up store is slated to open its doors on November 1st, as part of a campaign designed to promote PayPal's new slate of in-store technologies. Located at 174 Hudson Street in Tribeca, the outlet will also sport a large QR code on its exterior, which passers-by can scan with their smartphones to find more information on the company's new mobile payment services. Inside, merchants will be able to better familiarize themselves with PayPal's commercial offerings, which include location-based promotions, cross-device payment services and real-time inventory checks, among others. The store will be open for about three and a half months, and PayPal's new features should be making their way to physical retailers in the near future. No word yet on specific partnerships, though the company is expected to announce them soon.
Rumor: PayPal memo puts November 15 date on Xbox dash update
Kotaku reports that a leaked internal memo from PayPal lists November 15 as the date of the new Xbox 360 Dashboard update. It's the one that refreshes the look and adds more Kinect integration, if you haven't been following all the menu news. Why would PayPal be talking about the new Xbox dash? Reportedly, PayPal employees have been asked to test the new system, likely as it relates to payment options. PayPal support was added in the last Dashboard update, in the spring. We're contacting PayPal; if the people there truly have an interest in being our pals, they'll confirm the date.
The Lawbringer: The relationship between Blizzard and PayPal
Pop law abounds in The Lawbringer, your weekly dose of WoW, the law, video games and the MMO genre. Mathew McCurley takes you through the world running parallel to the games we love and enjoy, full of rules, regulations, pitfalls and traps. How about you hang out with us as we discuss some of the more esoteric aspects of the games we love to play? On Wednesday, Blizzard announced that PayPal would be its payment service partner for the new Battle.net wallet and Diablo 3 real money transaction Auction House coming with the release of the next Diablo game. Was anyone really surprised at this announcement? I sure wasn't, but that's because I already knew PayPal would be the payment service partner for the Diablo 3 real money Auction House from the moment the Diablo 3 real money Auction House was announced. I'm not trying to be smug here, because you knew it, too. You just didn't know that you knew. The relationship between Blizzard and PayPal is an easy one to decipher because of the nature of the business Blizzard is getting into with the Diablo 3 RMT Auction House. Auctions for real money are firmly in PayPal's wheelhouse because, shocker of shockers, PayPal is owned by eBay. When you think about the feasibility of the RMT Auction House and all of the legal ramifications that go along with it, you point to the eBay model of online auction facilitation for what works and provides the path of least resistance. This article is not a critique of PayPal as a service. There are plenty of places on the web to find that type of article. Instead, The Lawbringer will look at the actual services that Blizzard provides with PayPal, why PayPal was the obvious choice for real money transactions, and how PayPal's integration into Battle.net is not the potentially apocalyptic scenario that a few have presumed.
PayPal to add mobile payment features, hopes to redefine how we shop (till we drop)
Like the side ponytail craze of the '80s, the newest trend is turning out to be the mobile wallet -- especially as major players like Google, MasterCard, Verizon, Discover and now PayPal board the bandwagon. Our old buddy -- best known for its love affair with eBay (and ripping our own Darren Murph off a solid two large) -- has plans to implement new payment features primarily for (but not limited to) mobile. On the to-do list are things like QR / barcode scans, hyper local deals, fast checkout via NFC, etc. The company is adamant that it's not "just shoving a credit card on a phone," but rather planning to change the whole shopping experience. We'll know more when PayPal releases more details in early October, and when it launches the pilot product sometime later this year. Until then, check out the semi-cryptic video while brushing up on old episodes of SuperMarket Sweep after the break.
Escapement Studios sheds light on using Kickstarter, PayPal for indie development
The three-person team at Escapement Studios wanted to bring its indie puzzle-platformer, In the Dark: Puzzles Past Bedtime, into the light for gamers everywhere this summer, but first it needed money. Kickstarter has helped generate funds for plenty of indie devs, and Escapement thought it would work for them, too -- with a goal of $10,000, they put In the Dark's future in the hands of the Kickstarter public, and they waited. One month later, they had generated $7,440, but they failed to meet their goal, meaning they earned nothing. Today, Escapement is using PayPal to pick up where they left off from Kickstarter, with a fresh insight on independently raising money online. "Kickstarter's all-or-nothing funding is really meant for projects that can not be finished without reaching that goal amount," Escapement dev Mark Thompson said. "Using something like PayPal gets you your money right away; with Kickstarter you won't get anything until a week or two after your deadline. If your project is under way, this is a long period of uncertainty."
Google shutters Slide, founder Max Levchin moves to greener pastures
It's been barely a year since Google acquired Slide for a cool $200 million, but today comes news that the Mountain View crew has decided to dissolve its social apps unit, and that renowned entrepreneur Max Levchin will be leaving the company to "pursue other opportunities." Sources close to the matter told All Things D that the decision was announced at an internal staff meeting yesterday afternoon, and that most of Slide's 100 employees will likely shift over to YouTube. A Google spokesperson later confirmed that the unit will in fact be shuttered, but didn't reveal further details of where the displaced employees will land, saying only that the majority will remain onboard. Google didn't offer a concrete explanation for the decision, though Slide had been acting as a largely autonomous and peripheral branch, and was never fully integrated into the company's larger social team. Its apps, moreover, never really took off, and are due to be phased out over the course of the next few months -- including tools like SuperPoke Pets, Disco and Photovine. And then, of course, there's Levchin -- the man who founded the company just a few years after co-founding PayPal, and who currently serves as Yelp's chairman of the board. His immediate plans remain unclear, though we and the rest of the tech world will certainly be keeping a close eye on him, wherever he lands next.
PayPal reportedly overcharging some customers for OS X Lion
OS X Lion is only supposed to cost US$29.99 to install on any Macs associated with your iTunes account. Some Lion buyers who purchased it through PayPal are seeing charges way higher than thirty bucks, however. Multiple users have reported the issue on Apple's support forums, and Lion buyer John Christman emailed us earlier today saying PayPal showed nearly $4000 in fees associated with Lion. Apple support is now aware of the problem, and it's been classified as a "known issue" that they're looking into. Meanwhile, several affected customers are seeing their bank accounts significantly overdrawn, with all of the heinous additional bank fees that go along with that, so hopefully Apple also makes good on those additional fees. If there's a lesson to draw from this, here it is: if you pay for iTunes purchases through PayPal, it's probably a good idea to switch to another payment method until this gets sorted out. If you haven't bought Lion yet and you're worried about paying 100 times more for it than you're supposed to, you can always pay for it with an iTunes gift card.
PayPal announces phone-to-phone NFC support, cuts eyes at Google (video)
Still eager to do business with a company that'll lock your account on a whim and side with the buyer regardless of the facts? Splendid! If that's you, PayPal would love for you to know that it has announced a new phone-to-phone NFC payment application at MobileBeat 2011, offering Nexus S owners the ability to request and transfer funds between handsets. As of now, the functionality is quite limited -- there's just a single smartphone with the hardware capabilities to take advantage, and there's no phone-to-anything not a phone supported as of now. In other words, this isn't exactly a Square killer just yet, but it's definitely something for the sued folks at Google to pay attention to. We're also hearing that P2P transactions through PayPal are gratis "if using a bank account or existing balance in the customer's PayPal account," but no one's coughing up details on what'll be deducted in the form of fees when using a different method of payment. A video demo of the 48 second transaction awaits you after the break, but sadly, there's no details on how soon it'll be made available to the public. Update: It'll be available in the Android Market "this summer."
Report: LulzSec hacking group releases thousands of account logins, includes Xbox Live and Facebook [update]
Adding to the list of game-related companies it has attacked, LulzSec yesterday claimed to have stolen and leaked the login and password information for approximately 62,000 "internet accounts," reports the CBC. The stolen info is said to comprise logins/passwords from Facebook, Twitter, "dating sites," PayPal and, notoriously, Xbox Live. It is also claimed that the majority of accounts are from the United states, though several other countries are named in the report. The account database info is still currently available through the LulzSec website (though we'd suggest not visiting) -- various folks on Twitter responding to the group claim to have done a variety of things with the information, from having a large pack of condoms delivered to an elderly woman, to one person saying they bilked a PayPal account for £250 ($404). Earlier this week, the group attacked and successfully took down a handful of game industry websites, including EVE Online, Minecraft and The Escapist. All three sites quickly recovered and have been online since. Microsoft has yet to respond to request for comment on yesterday evening's alleged breach. Update: Microsoft has released a statement, which states that Xbox Live was not compromised to the best of Microsoft's knowledge, and the logins/passwords were released at random, with people encouraged to try said information on services like Xbox Live (among others). "This group appears to have posted a list of thousands of potential email addresses and passwords, and encouraged users to try them across various online sites like Xbox Live in the event one of the users happens to use the same password and email address combination. At this time we do not have any evidence Xbox Live has been compromised. However we take the security of our service seriously and work on an ongoing basis to improve it against evolving threats."
iTunes fraud surge hits gift card balances, PayPal accounts
The frustration and questions surrounding iTunes App Store purchase fraud are (unfortunately) continuing. Over the past three weeks, we've received several first-hand reports of accounts with positive gift card balances being unexpectedly drained; often the charges are for in-app purchases for apps such as Section8's World War, Sega's Kingdom Conquest or Kamagames' Texas Poker. Even as Apple is pushing forward with iCloud, questions remain about the security and safety of those millions of accounts. You can read the examples on Apple's discussion boards (stretching from November of 2010 until this week), a series of posts over at Betanews, or coverage at PC Pro -- but many of the stories are similar to the one below. Users who funded their accounts with gift cards saw those balances chewed through with unauthorized purchases; one user with PayPal funding for his account saw over $500 in fake purchases. The in-app buys were for apps the users never downloaded; most claim that their passwords were never compromised and only used for iTunes. Even if phishing or password compromises can explain some of the purchases, it's hard to imagine that all of these accounts were cracked. Here's our first example, from mid-May. If you have similar instances, let us know in the comments or send us a tip. We're asking Apple's media team for answers, if there are any to be had. I bought a $15 iTunes gift card from Apple so I could buy a chat app (Verbs). I also purchased some other apps (Monopoly, mostly because it's cheap, Bumpy Road and loaded a few free apps) which left me with roughly $7-ish dollars remaining in my account. On 5/19, the following happened: I noticed that my store credit had decreased to 51 cents when I went to purchase another app, but thought nothing of it. Actually, my initial thought was maybe a purchase from the past had caught up with me. I wasn't sure. Later that evening I received an iTunes receipt email to the tune of a $99 in-app purchase for a game called "World War". I immediately tweeted about the issue and changed my password. From that I was able to glean info that the app was purchased on 5/18 at 7:59pm. A free app called World War and then a $99 in-app purchase for "1700 honor points." The strange thing is I've never downloaded nor purchased this app myself, it doesn't even exist on my device so this is not a case of the smurf-berries. I emailed Apple support and went to bed because their human-powered support line was closed by 10:30p. Today I called Apple support and was on the line with them for close to 30-40 minutes. I explained everything above to the support person, who at the same time was IM'ing his iTunes store support contacts. They asked me when I had purchased the gift card, I told them at/around the 13th and what my first and last purchase was. I told them the first purchase was for Verbs, the last was Bumpy Road. They investigated further and noticed that prior to the free app + in-app purchase that two $50 store credits were put into my account. At which point the free app was "purchased" along with the in-app purchase of $99 (which equaled to $108 with tax). This raised a flag with them and their Support Manager and they immediately froze my account and escalated my case to Apple's Fraud Dept. The support person says this was the fastest occurrence of this that he has ever seen and he along with others had to deal with the Smurfs case. I'm convinced that they will refund the $7-ish dollars that was there before and they mentioned that the account should only be closed for 24-48 hours. During this time they will be investigating this issue and trying to piece together this on their end. Right now I'm less concerned with the refund and MORE concerned with the app developer and whatever scheme is going on. As for the advice they gave me, basically to change my password (yadda, yadda) and turn off in-app purchases in Settings. They could not, however, explain to me how a free app + in-app purchase was associated with my account. The developer of the app, Section8, are the same outfit who were sued over stealing user data.* A second example, this one featuring multiple PayPal charges totaling over $500: I basically started receiving emails from PayPal saying "You have just sent $44.95 to iTunes" and I was shocked because I did not buy anything. I immediately logged into PayPal and cancelled my payment agreement with iTunes. I received 11 charges of $44.95 each. I have filed a complaint with iTunes and PayPal but I have not received any reply yet. From what I read online, it seems like it is not clear if iTunes has been hacked or if the Sega software used for the hack (which I never downloaded) has been compromised. I never had the feeling that my account had been compromised before. Everything worked perfectly fine, never had strange emails, phishing attempts, etc. Our final report, with gift card balances being drained: Shortly after loading $50 of gift card credit on my itunes account, a remaining balance of $37 (after some earlier purchases) was wiped out by Kamagames Texas Poker chips. I googled the problem and it seems like many many people have experienced the same thing, and a snotty response from Apple about it as well. Everyone affected seems to have been gift card users, or those with a positive itunes balance, rather than money being charged to a credit card. I don't understand how this kind of fraud is being perpetrated but I am angry with Apple for not coming clean about it and explaining the problem given that it clearly seems something more specific than stolen usernames and passwords... The forum linked above is just one of many reporting this issue which seems to have started earlier this month.
