You can be on Entrepreneur’s cover!

PayPal Here Joins Mobile-Pay Apps Already There When PayPal launched its newest mobile payment platform, it joined a wide selection of existing services. Here's a breakdown of the leaders.

By Gwen Moran

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

PayPal Here, Joins Others Already ThereEBay's payment service PayPal revolutionized how we pay for online purchases. And two years ago, the payment giant attempted to change how we use our phones when it introduced its PayPal Mobile app, which offers to transfer money from one person to another by bumping phones together. And though it would make sense for PayPal to continue its reign in payment innovations, the company appears to be the last to arrive at the mobile-payment party.

Earlier this month, PayPal with a heaping helping of pomp, launched its mobile payment system PayPal Here, which runs on a person's smartphone through a downloadable app and uses a small plastic reader to swipe cards. The company boasted last week that it signed up more than 1,000 new users per hour in its first day.

Though PayPal remains a juggernaut in the online-payment space, the question is, is PayPal too late to make a dent with business customers?

The new platform joins incumbent systems like Jack Dorsey's Square, Intuit's GoPayment, and North American Bancard's Pay Anywhere, among others. Square, alone, claims more than a million users and merchants and a spokesperson says the company processes more than $4 billion annually. But, it's a sector that's growing, says Todd Ablowitz, founder of Double Diamond Group, LLC, a Centennial, Colo., payment systems consultancy. "The entrance of PayPal shows that this is a very real market, with an increasing number of options for target merchants," he says.

Related: For Some Businesses, Square Register Can Replace Traditional Point-of-Sales Tools

Cynthia Wahl, for one, says she loves Square. The co-founder of Texas Toast Culinary Tours, a Fort Worth, Texas-based tour company, says she routinely uses her Square system to sign up last-minute attendees on their tours—an important financial catch-all for the two-year-old company.

"It's so simple to use," Wahl says. "We signed up in about five minutes and were taking credit cards immediately. The money is in our account the next day. It just seems like Square is looking out for the small business owner."

But features vary from provider to provider. Texas Toast doesn't run tours every month, so Wahl is loathe to pay a monthly fee, which is an option with one of the services. But Ablowtiz says it might make sense for those with a high volume of mobile transactions to opt for a monthly fee and a lower swipe rate. Your business may need to accept multiple forms of payment, generate invoices or process transactions internationally -- features that vary from app to app.

So, how do the main players stack up? Here's our breakdown to help you evaluate the right mobile system for your business:

Square - Paypal Here - Pay Anywhere - Intuit GoPayment
Cost of app and readerFreeFreeFreeFree
Swipe fee per transaction2.75%2.7%2.69%2.7% per transaction or monthly fee of $12.95, plus 1.7% per transaction
Keyed fee
(numbers entered manually) per transaction
3.5%, plus 15 cents3.5%, plus 15 cents3.49%, plus19 cents3.7% per transaction or monthly fee of $12.95, plus 2.7% per transaction
Monthly minimumNoNoNoNo
Card brands acceptedVisa, MasterCard, Discover, American ExpressVisa, MasterCard, Discover, American ExpressVisa, MasterCard, Discover, American ExpressVisa, MasterCard, Discover, American Express
Other forms of payment acceptedCashPayPal, Check (U.S. only)NoNo
Funds availableNext business daySame day via PayPal or three business days Two business daysTwo to three business days
Accepted platformsAndroid, iOSAndroid, iOSAndroid, iOSAndroid, iOS
Invoicing ability from appYesYesNoNo
International use (available to foreign-based merchants)NoCanada, Hong Kong, AustraliaNoNo
Syncs with accounting programsNoNoQuickbooksQuickbooks

Gwen Moran

Writer and Author, Specializing in Business and Finance

GWEN MORAN is a freelance writer and co-author of The Complete Idiot's Guide to Business Plans (Alpha, 2010).

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Side Hustles Are Soaring as Entrepreneurs Start Businesses Working Part- or Full-Time Elsewhere, According to a New Report

The younger the entrepreneur, the more likely they were to start a business as a side hustle.

Side Hustle

This Insurance Agent Started a Side Hustle Inspired By Nostalgia for His Home State — Now It Earns Nearly $40,000 a Month

After moving to New York City, Danny Trejo started a business to stay in touch with his roots — literally.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Scrabble Makes First Change to Its Board in Over 75 Years

The new roll out is only available in Europe as of now.

Growing a Business

Want to Become an Industry Leader? Be a Guest on Podcasts — But Not the Ones You Think

If you are trying to promote your new product or service, there's a simple yet effective way to stand out from the rest.

Business News

CPI Report: Inflation Rose More Than Expected in March, Driven By Housing and Energy Costs

The average U.S. household is paying $227 more per month for goods compared to one year ago.