PayPal Chasing Square Deeper into Europe

PayPal has confirmed the launch of a European version of its PayPal Here mobile payments service for small merchants.

The move comes as leading rivals in the space like Square dramatically step up their efforts and reach across the continent as well.

PayPal unveiled a new device, about the size of a smartphone, that allows small merchants to accept credit and debit cards under a more-stringent and complex system in Europe known as Chip and PIN.

Not surprisingly, the gadget easily connects to a new PayPal app optimized for the merchant’s iPhone or Android-powered device.

For now, PayPal tells Reuters that the service will reach the United Kingdom this summer and in other European countries shortly thereafter.

PayPal reportedly plans to charge merchants a “nominal fee” for the European PayPal Here device, although the per-fee transaction will remain similar to the 2.75 percent it charges small merchants in the US.