PayPal is to launch a device that lets small traders, from Ice Cream sellers to taxi firms, accept payments via their smartphones.
The device, called PayPal Here attaches to the trader’s phone and links to an app which acts like a till. Customers can then swipe their card through the device and enter their pin to complete the transaction.
The scheme aims to provide a cheaper alternative to card payments which can be costly to small firms.
Customers use the device in the same way that they would a chip and pin machine in a high street store.
PayPal has said the device will not tie traders into a contract, although they will need to pay a yet to be disclosed one-off charge for the device and a “small fee” per transaction.
Cameron McLean, managing director of PayPal UK, said: “Cash and cheques have served us all well over the years, but businesses that rely on them risk missing valuable sales.”
The pocket-sized device is set to be launched in the UK this summer.
Watch a video explaining how the service works below:
