It looks like PayPal has announced a competitor to Square. The new service is called PayPal Here and while it has been officially announced and detailed, it is not yet available for anyone or everyone to start using. That said, you can visit the PayPal Here website and choose to sign up for more information.
This setup will seem familiar to those who are already using (or have researched) mobile phone credit card processing. In the case of PayPal Here, those who sign up will get access to a free smartphone app (available for the iPhone and coming soon for Android) along with a “fully encrypted thumb-sized reader” that will allow you to swipe cards. The Here service will allow merchants to accept debit and credit cards along with checks and PayPal. Additionally, it will allow the merchant to send invoices.
And here is the part that many are most likely wondering — the cost. According to details provided by PayPal, the Here service offers a “competitive fee structure with no monthly account or set-up fees.” Simply put, PayPal Here charges a flat rate of 2.7 percent for card swipes and PayPal payments. And in addition, PayPal also noted that Here merchants will receive a business debit card for access to cash and 1 percent cash-back on eligible purchases.