Mobile payment processor Square is setting up shop in Canada, the company announced today. The company has been public about its plans to expand abroad for some time, but this marks its first new market outside of the US. In a press release, Square said it will handle Canadian transactions for the same 2.75 percent it charges in the US, its Mobile Card Reader dongles will remain free, and funds will be available to payees the following business day.
PayPal’s own dongle-based mobile payment service, PayPal Here, launched in Canada along with the US, Hong Kong, and Australia back in March, followed by the announcement of a joint venture with SoftBank to offer the service in Japan. PayPal’s president David Marcus announced in July that Here was “generally available” in the US and Hong Kong, but conspicuously failed to mention Canada. PayPal Canada’s Managing Director Darrell MacMullin noted a week earlier that it was taking a lot of time to get the devices out to merchants because of the lengthy application process. If Square has more success with its own rollout, PayPal's 7-month head start might not end up being so significant.