PayPal is taking a major leap into the payment-processing space: it's eliminating fees for businesses that sign up for its service.
The news was announced on Tuesday by PayPal president David Marcus, who said that any business that dumps its old point-of-sale (POS) services in favor of PayPal Here -- the company's mobile-payment-processing service -- or another POS offering that integrates PayPal's technology, it'll wave fees through the rest of the year.
"We will offer free credit, debit card, check, and of course PayPal processing for the remainder of the year to any qualifying U.S business turning in their dusty old cash register in exchange for a modern solution like PayPal Here (iPad, card reader, iPad stand, cash drawer, and printer) - ShopKeep, Vend, ERPLY, NCR Silver, and more partners to be announced soon," Marcus wrote in a company blog post.
PayPal Here, which is the company's answer to Square and other similar mobile-payment solutions, works across a wide array of mobile devices. Merchants sign up for the service and attach the card reader to a mobile device, like Apple's iPad. From there, merchants pay 2.7 percent per transaction. Through the rest of the year, however, those who sign up for the service won't have to pay any of those fees.
Square, PayPal's biggest competitor, currently charges 2.75 percent per swipe with no additional charges.