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Rick Oglesby, senior analyst with Double Diamond Payments Research, says the product features aren’t the largest differentiators, but rather the companies themselves — where they come from and their pre-existing customers.

“For example, PayPal’s legacy stems from eBay and online selling, so PayPal Here users are most likely to be companies with a significant online presence but also some local sales needs,” he says. “An eBay seller who also sells at some local craft fairs would be a good example. It’s easy and convenient for these merchants to just extend their relationship with PayPal to include the card reader.”

He says Square focusses more on small mobile retailers and food service providers such as cafes, food trucks, caterers, pop-up retailers, etc.

“Their offering includes not only payment acceptance, but also a lightweight point of sale system that replaces a cash register with a tablet app.”

GoPayment, Intuit’s product, has its foundation in Quickbooks, an accounting solution with applicability across many industries.

“Their payment product is loosely tied to Quickbooks and is targeted at a broader set of industries with more varying needs,” Oglesby says.

The market for mobile point-of-sale (mPOS) systems is mostly small businesses, though Oglesby notes, “The trend seems to be that mPOS providers are developing more features and moving up-market.”

Credit Cards Canada, July 17, 2014