PayPal has unveiled a new NFC enabled version of its PayPal Here Chip and PIN card reader.
The card reader, which will enable contactless card payments from debit and credit cards, will be released in the UK and Australia summer 2015 with a US launch set to follow later in the year.
PayPal Here, aimed specifically at businesses on the move such as traders, photographers or caterers, will also allow firms to log cash and cheques and send invoices and receipts - also accepting contactless NFC-based payments.
Narik Patel, director of mobile merchant services at PayPal UK, said: “PayPal Here has been a huge hit with businesses as it has made on-the-go payments easy and affordable for them.
“PayPal Here enables them to accept card and PayPal payments face to face, and the new version of the card reader will take contactless card payments - enabling UK businesses large and small to take advantage of the boom in contactless payments.
Patel concluded: “We see NFC technology as one of the many ways that consumers and businesses can pay and get paid. We’ve built it into this product to offer choice to businesses and their customers.”
The reader will take a 2.75 per cent cut of all transactions, which could raise substantial capital as PayPal claims to have 162 million active digital wallets globally, including 20 million in the UK.