Paypal Here launched last year in the US and several other countries, but they’ve had to overcome the gap between simpler magnetic strip system and the Chip and Pin system that is standard in the Eurozone. Magnetic strip are much easier to manage but are also considered less secure, according to Reuters.
Paypal is directly competing here with Square, a service started by Twitter co-founder Jack Dorsey which offers small businesses a free payment device that attaches to smartphones in exchange for a flat 2.75% cut of sales. Square has yet to launch in Europe, and Paypal is obviously capitalizing on this. Paypal Here is going to follow a similar model to Square’s flat percentage take as it has in the US. The company is also going to charge merchants a “nominal” fee for the device itself, but details as to exactly what that fee will be are forthcoming.