Financial Cryptography

Paypal go back to their roots - Paypal Here Again

In what is a development redolent with history, Paypal have developed a way to turn your phone into a credit card register:

Much like Square, PayPal Here will have a card reader that plugs into your mobile phone via the headset jack on your handset. While Square's reader comes in the form of a white square device, PayPal's will instead be a blue triangle. The encrypted reader will be available for free to small business owners and can be used to accept credit card payments. ... While the PayPal Here app is designed to be used hand in hand with the card reader, the app can also be used to accept checks, keep track of cash transactions, and accept credit card transactions in situations where you might not have your card reader present.

Credit card and check transactions can be accepted by capturing a photo of the check or card in question, and customers select a tip amount and sign for the transaction directly on the phone's screen.

Much of the post correctly points out that Paypal are playing catchup against Square which does the same thing.

What older readers will find amusing is the sense of deja vu - Paypal was originally an application on a Palmtop. And the use of sound to transmit the credit card information to the phone is also quite evocative of the old days of phone-coupling models.