Mobile payment functionality is now available through a widget offered by PayPal in the United Kingdom.
In the bustling landscape of mobile card payment solutions in the UK, PayPal is set to make a significant entry this summer with the launch of its new Chip and PIN device. The UK, being PayPal's second largest market outside the US with 18 million active users, presents a logical starting point for PayPal's expansion in Europe.
PayPal's focus with this device is not on making a profit from the device itself, but rather on providing a convenient solution for small businesses. This approach aligns with the company's mission to simplify financial transactions for merchants and consumers alike.
Key players in the UK market, such as PayPal Here, Square, iZettle, and formerly mPowa, have been offering mobile POS (Point of Sale) and card reader services for some time. PayPal Here and Square, in particular, are well-known solutions among UK merchants, offering seamless integration with e-commerce, robust mobile apps, and support for contactless payments, chip-and-PIN, and magstripe cards. Both providers also boast competitive transaction fees and fast settlement times, making them popular choices for small and medium businesses.
iZettle, now owned by PayPal, has a strong presence in the UK market due to its user-friendly hardware and software, competitive pricing, and wide acceptance among smaller merchants, particularly in retail and hospitality sectors. It integrates well with digital wallets and provides value-added features like inventory and sales analytics.
While mPowa was once an early UK fintech focusing on mobile payments and micro-merchants, it has largely faded from prominence or ceased operations post-2017 after financial difficulties. It is no longer a competitive force in 2025.
The UK card payments market is heavily debit and credit card dominant, with contactless cards comprising over 1.6 billion transactions monthly. Mobile payments and digital wallets have rapidly gained traction, driven by smartphone penetration and regulatory innovation like Open Banking.
The PayPal Chip and PIN device, designed and built in the UK, uses Bluetooth to connect to a smartphone. Customers enter their PIN on the smartphone and touch a confirm button on the app to process the payment. The exact costs for using the device will be revealed when it is launched this summer. Businesses will pay a one-off set up fee to use the device, and its cost competitiveness will be crucial for small businesses.
Mobile credit card reader solutions, including the PayPal mobile payments device, address a genuine need in the market by providing an easy and convenient way for small businesses to accept card payments without investing in costly equipment. This development is expected to further drive the adoption of mobile payments in the UK, contributing to the already rapidly growing market.
- The launch of PayPal's new Chip and PIN device aligns with its focus on technology and business, aiming to provide a modern financial solution, particularly for small businesses in the UK.
- As mobile credit card reader solutions like the PayPal Chip and PIN device become more prevalent, technology is playing a significant role in simplifying financial transactions for merchants in the UK market, consequently driving the growth of mobile payments.
