PayPal unveils Square rival

PayPal has taken the wraps off its Square rival, named “PayPal Here” offering small businesses a free dongle and app that allows them to accept card payments with their mobile phones.

According to David Marcus, Vice President of PayPal’s Mobile unit, “PayPal Here” is the world’s first global mobile payment solution that allows small businesses to accept almost any form of payment. This includes accepting payments by swiping cards with a fully encrypted thumb-sized card reader, or use a phone camera to scan and process cards and checks. It also allows them to invoice directly from the mobile app and, of course, accept PayPal in a brand new way.

The service turns any iPhone, and soon Android smartphone, into a mobile payment solution.

PayPal Here offers a simple flat rate of 2.7% for card swipes and PayPal payments. Merchants are also given a business debit card for quick access to their funds and 1% cash back on eligible purchases.

PayPal Here is currently available to select merchants in the United States, Canada, Australia and Hong Kong. The service will be open to all other merchants in these countries in April.