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PayPal takes on Square and Groupon with free payment processing in the US

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PayPal Here
PayPal Here

PayPal has unveiled its latest strategy in an attempt to dominate the mobile payments space. The web payments company is dropping credit, debit, check and PayPal processing charges for US businesses for 2013 that trade in their traditional cash registers and use a PayPal Here solution. Its new program — Cash For Registers — will go live next month, and comes just hours after rivals Square and Groupon announced new products and services designed to modernize retail payments.

While its competitors are focused on building their own hardware, PayPal is taking a different approach by advertising PayPal-enabled registers, stands, and printers made by ShopKeep, Vend, ERPLY, and NCR Silver, alongside its branded accessories and mobile apps. It will also market participating merchants to its 55 million users in the US. Absorbing charges over next six months, PayPal can do something that many other mobile payment companies are unable to match, later recouping the charges it waived as retailers continue to use its products and services after the program ends.