Named PayPal Here, the new service will allow small businesses readers the ability to accept credit and debit card payments offline while offering customers the option to pay via a trusted brand.
Although the reader will be issued to merchants free of charge, transactions will be subject to a 2.7% handling fee.
The company says merchants will also receive a PayPal debit card which will give them “quick access to cash and 1 percent cash-back on eligible purchases.”
“We’ve heard small businesses loud and clear,” said PayPal’s vice president of mobile, David Marcus.
“They don’t want to miss sales opportunities because they can’t accept the payment type that their customers want to use. They want quick access to their money, a reliable card reader, and one transparent, low fee to process these payments.
“I’m thrilled to launch PayPal Here because we’ve been able to bring all of these key features together into a product that’s so simple to use.”
The service is launching in the United States, Canada, Australia and Hong Kong next month and will be available in the UK and Europe later this year.