PayPal’s Here mobile payments products represent a direct assault on Square, and the company adds in a few features that would take some effort for Square to replicate. The new product also provides some invoicing and tracking functionality that could be good enough for some businesses that were considering Intuit’s Quickbooks software.
Among the significant features from the Here launch: Immediate funds availability for credit card and PayPal transactions. Once a business has processed a transaction, the money can be spent using PayPal’s debit card or withdrawn from an ATM. For cash-strapped businesses, this could be important. Square isn’t exactly a slouch at making money available — money from a transaction I processed on a Saturday night was available at my bank the following Monday — but it’s not immediate. Ability to accept checks. Businesses can take a picture of a check and deposit it into their PayPal account. (This money is not immediately available.) This has an added benefit in that businesses may choose to use PayPal in place of a bank account.