Online payments firm PayPal has introduced its chip and pin machine in Europe for the first time in the form of a sub £100 device aimed at small business owners.
PayPal Here allows small traders, taxis and shops to accept debit and credit card payments with a transaction fee of 3%, reducing reliance on cash or cheques.
The device will be rolled out to selected businesses prior to a full launch in the summer with the UK being the first territory to receive it.
Eden Zoller, principal analyst at Ovum, commented: “The UK is the logical place to start as it is PayPal’s second biggest market outside of the US with some 18 million active users.
“PayPal has taken pains over the PayPal chip and pin device, which was designed and built in the UK and over a year in the making. But it will come with a price tag and this will need to be competitive given the solution is meant for small businesses. PayPal says this will be the case – it is not looking to make money from the device itself.
“Mobile credit card reader solutions appear to address a genuine need in the market - an easy and convenient way for small businesses to accept card payments without having to invest in costly credit/debit card processing equipment. The market for these solutions is becoming increasingly competitive and PayPal Here is not the first of its kind in Europe, where the likes of iZettle, Payleven and mPowa have already launched. But PayPal has an advantage in being an established, trusted payment provider with a high profile global brand.”