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eBay's (EBAY) PayPal Could Shake-Up Small Biz Mobile Payment Market

March 13, 2012 9:34 AM EDT
Shares of eBay (Nasdaq: EBAY) are indicated for a higher open Tuesday amid bullish sentiment behind a move to make PayPal more competitive.

This Thursday, PayPal is expected to launch a solution for small businesses which includes a triangle-shaped dongle for processing payments from mobile devices. The move would put PayPal on more solid footing with Square, Intuit's (Nasdaq: INTU) GoPayment and Verifone's (Nasdaq: PAYX) PAYware.

Progression into mobile payment solutions is a natural for PayPal, which is the most profitable unit of eBay. Recent news has home goods mega-retailer Home Depot (NYSE: HD) looking to launch the PayPal terminal at 2,000 locations nationwide.

Users will be able to swipe their mobile devices or enter their phone number and PIN.

Though PayPal has about 100 million users and a known name for online transactions, its presence in physical locations is limited. However, the simplicity of integration and potentially lower costs might make a strong argument for small business owners, who have been working to battle stagnant market conditions over the last few years.

PayPal has also moved to improve its relations with merchants. The unit recently announced it would modify its 21-day hold policy, now keeping funds in a non-interest bearing account.

EBay is up about 0.6 percent early.


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