PayPal Looks To Rival Square

PayPal has a new enemy within its sights in the form of Square - but this Thursday could see the mobile payments table turn, should PayPal get its way.

Shiny San Francisco company, Square, appears to have it all. But come this Thursday, there could be a shake-up in payments systems land - as PayPal has plans to launch a competitive service that aims to allow business owners to carry out credit card transactions from the comfort from their smartphones.

According to Mashable, the report confirms that “sources we’ve talked to who are familiar with PayPal’s plans,” says the dongle will be triangle-shaped and will take on not just Square, but with Intuit’s GoPayment as well as Verifone’s PAYware.

Director of communications for PayPal declined to comment on their future plans, but released the following statement: "While we cannot comment on rumors and speculation, what we can tell you is that at the PayPal event on Thursday we will unveil what we believe will be the future of commerce for small businesses."

Last year, PayPal racked up an impressive $4 billion worth of mobile payments - up from 2010's $750 million and 2009's $141 million. However, with Square now trying its luck in the mobile payments market, PayPal might have to watch its back - oh, did we mention Square's new iPad app - Cash Register? Watch this transaction space.