PayPal to introduce new mobile payment service in Europe

PayPal has announced that it is bringing its PayPal Here mobile payment service to Europe, with the first version launching in the UK over the next few months.

The new device will enable vendors to accept payment via debit and credit cards that use the Chip and Pin system, a feature that is sure to be a boon to small merchants. Users will need to pair the small PayPal Here gadget with an app on their Android- or iOS-powered smartphones using Bluetooth to process consumers' PIN and card details.

PayPal will charge prospective customers a "nominal" fee for the device, and also intends to charge merchants a fee per transaction, expected to be about the same as the 2.75 per cent it is currently charging in the US.

The PayPal Here payment service was first introduced in the US, Australia, Hong Kong and Canada last March to moderate success, but its impending launch in Europe is likely to help the company grow its customer base as it competes with the likes of iZettle and Square, a similar mobile payment service headed by Twitter co-founder Jack Dorsey.

With an eye set to promote the new system, the company is teaming up with several UK businesses before its launch this summer.