PayPal Here Lands On Microsoft Surface

PayPal Here has finally landed on Microsoft’s Surface. The payments giant’s card-swipe device is now available with an app that runs under Windows 8.1 and a suite of small-business management software, the companies said on Wednesday (March 18).

The Windows version, which the two companies announced in January at the National Retail Federation’s Big Show in New York, is being sold in Microsoft’s online store as well as at the software maker’s full-line brick-and-mortar stores. PayPal Here is also being bundled with the Microsoft Surface Pro 3 tablet, although it will work with any Windows 8.1 tablet.

Third-party software vendors including Canvas and iConnect POS have also implemented their software on Windows and can work with PayPal Here, and Microsoft is also offering point-of-sale accessories from Anthro, ArmorActive, Heckler Design and ProClip USA, according to Microsoft Surface Senior Manager Angela Lean.

Part of the PayPal/Surface advantage for small businesses is that they won’t have to use multiple devices to handle point-of-sale and business management, Lean said. “Because Surface Pro 3 packs the full power of a PC, it can also handle inventory and supply management tasks needed to run the business — there’s no need for SMB retailers to purchase multiple devices, such as an iPad for POS and full laptop for operations,” she added.

As part of the launch promotion, U.S. merchants who buy either a PayPal/Surface Pro 3 bundle or the $15 PayPal Here device by itself will also get a discount on transactions using PayPal: Until June 15, 2015, merchants will pay 1.9 percent for each PayPal Here transaction, instead of the usual 2.7 percent transaction fee. According to Microsoft’s terms and conditions for the promotion, Microsoft will rebate the difference between the standard PayPal rate and the lower rate in the form of a credit into the merchant’s PayPal account no later than June 30, 2015.

While no other announcements have been made, it’s likely that Microsoft’s PayPal Here app will also support the EMV-and-contactless card reader that PayPal announce this month at Mobile World Congress in Barcelona. That device is expected to be available later this year.