Paypal Offers New SMS-Based Money Transfer Service

PayPal has just launched a new service called PayPal Mobile. This service allows a PayPal user with an active mobile phone account to send a payment to another PayPal account -- even another mobile user with a PayPal account. Of course the PayPal user at the other end of the transaction could be either an individual or -- more importantly -- a merchant.

This system clears the way for PayPal to enter the potentially massive "micro-payment" market. With PayPal Mobile anyone with a PayPal account could pay electronically for goods purchased from any merchant also having a PayPal account. Of course this capability already exists, but most PayPal users are stuck with making PayPal transactions using their computers.

** SMS-based payment system

PayPal Mobile is mobile phone and SMS-based, which means you use text messaging to send the payment. That completely frees the user from dependence on his or her computer to access his or her PayPal account.

PayPal Mobile payments are sent by sending a text message to 729725 (paypal), and then keying in the amount and destination of the payment. The destination can be another mobile number, a regular land-line number, or the person's email address (the one registered with PayPal).

The new system currently only works with mobile phones in the U.K., U.S., and Canada, but is expected to expand to other countries once the bugs are worked out.

To make use of this system, you need an active PayPal account. Login into your account and go to your Profile. Click on Phone, and then click on the "Activate Payments" link. You will be asked to enter a PIN, and will be phoned at your number to confirm your activation.

Normal land-line numbers can be activated too, but of course, text messaging will not work with these. To send money by voice or keypad using your land-line, you call 1-800-4PAYPAL. Once the payment is sent, the person you are sending the money to will be notified by either an automated phone call, or by email.

** Potentially valuable for offline merchants

The important thing to notice about this is that it lets a merchant associate a normal land-line number with his or her PayPal account. So say you're an antique dealer in Toronto. A customer wants to buy something from you and says "Do you take PayPal?"

"Sure", you say, "Just send the payment to 416-123-1234". While he's standing in front of you your customer uses his cell phone to call PayPal and has the payment sent to your number. A minute later you receive an automated call informing you of the payment. And just to make sure, you check your online account to see if the funds have been transferred.

** PayPal is targeting mobile users

It is fairly obvious who PayPal is targeting with this new text messaging payment service. It is a perfect fit for cell phone users who regularly use text messaging, and who also regularly buy things requiring fast, hassle-free micro payments. Digital music is the most obvious example.

Other micro-payment systems are typically tied in with cell phone companies, payment processing companies that focus on merchant services, or in-house solutions like those provided by iTunes. That's all right if you deal with a limited number of vendors. But for customers who want to use this service for several vendors, they are forced to use a mish mash of payment processors depending on the merchant they are dealing with.

Clearly there is a need for a reliable third party system that stands apart from specific merchants, specific banks, and specific credit card companies. A payment processing service provided by a broadly-used and legitimate money clearing house like PayPal seems like a pretty good idea, and one that has the potential to seriously increase the PayPal user base at the same time.

Rick Hendershot publishes Linknet News | Reduce mobile phone costs - Free tips and secrets | Free sms service - Send gsm sms to German mobile phone users.

Guide To The Best Balance Transfer Credit Cards

Balance transfer credit cards make an excellent choice for consumers looking to transfer a balance from a higher interest rate credit card to one with a lower interest rate. In this way, the consumer can save money by reducing or even eliminating finance charges. When looking for the best balance transfer credit cards, it is important to look at a variety of factors.

The APR is one of the first factors a consumer should consider when looking for the best balance transfer credit cards. Credit card companies are hoping to steal your business away from other credit card companies. As a result, they often make special introductory offers with lowered interest rates for balance transfers. In many cases, this APR will even be 0.00%. Be sure to find the balance transfer credit card offering the lowest APR, and then only use that card for your balance transfer. Don't use it to make any purchases. This is what the credit card companies are hoping consumers will do so they can assess finance charges on the purchases they make with their card.

The length of the special introductory APR varies from card to card. Sometimes, the length is also dependent upon the applicant's credit history. It is important to be sure how long this period lasts and to set goals to have the balance paid in full once the introductory period is complete. The best balance transfer credit cards will keep the special introductory rate in effect on the card for the life of the loan. In other words, the APR stays the same until it has been paid off entirely. For consumers that will not be able to pay off the balance within the introductory period, this is certainly the best way to go.

Most credit cards assess fees when making balance transfers. These fees are generally determined as a percentage of the total amount of funds transferred. Most commonly, balance transfer fees are 3% of the amount transferred. Many balance transfer credit cards will, however, waive these fees during the introductory period. It is best for consumers to choose these balance transfer credit cards. Otherwise, they may be paying large amounts in fees, negating the savings in finance charges.

Some balance transfer credit cards require initiating balance transfers at the time of application for the card. Yet others allow balance transfers to be completed throughout the duration of the introductory period. The best balance transfer credit cards are the former, simply because they allow for more flexibility. Consumers who are sure they will not need to transfer balances later may, however, be happy with a credit card that only allows transfers to be made at the time of application.

Some balance transfer credit cards place restrictions on the types of balances that can be transferred. For example, some business credit cards only allow business expenses to be eligible for introductory rates. It is important for consumers to be sure to understand what type of balances can be transferred before applying for a card to ensure it meets their needs.

Many balance transfer credit cards also have special rewards programs. Consumers need to compare the programs before deciding on a credit card so they can choose the card with the rewards program best suited to their lifestyle. In addition, some balance transfer credit cards do not count the funds that are transferred toward the points system used in the rewards programs. To get the most of the card, consumers should find balance transfer credit cards that do count the transfers toward their rewards programs.
Will Roberts recommends you visit CreditCardAssist.com to learn more about the best balance transfer credit cards currently available in the marketplace.