Paypal's new launch, a chip-and-pin machine aims to offer offer new sales methods to UK small businesses that had previously relied on cash or cheques.
"Chip and PIN" is the brand name the banking industry in the UK and Ireland have adopted for the rollout of the EMV (Europay, MasterCard, Visa) smart card payment system for credit, debit and ATM cards. The word "chip" refers to a computer chip embedded in the smartcard, while PIN refers to a personal identification number that the customer has to supply.
The new launch would allow market traders, taxis and shops to be able to accept credit and debit cards as also Paypal payments.
There would, however, be an initial cost of under £100 for the Paypal Here device.
According to the firm, which would face competition from other similar devices, it would take a transaction fee of less than 3 per cent.
David Marcus, president of Paypal said the company spent a huge amount of time talking and listening to small businesses.