PayPal is bringing its PayPal Here mobile payments service to Europe. Paypal is launching a "Chip & PIN" version of PayPal in the UK first. The new product has been designed to make it simple for cash-based businesses in countries that use "Chip and PIN" debit and credit cards -- not swipe cards like in the US -- to take and make digital payments.



The new device is about the size of a smartphone. It connects to a new PayPal app that merchants can run on Apple iPhones and Android-based smartphones.

PayPal will launch the service in the United Kingdom this summer and in other European countries later.

PayPal's service is battling with many start-ups including Square, which is offering a free card reader that attaches to smartphones and handles payments for a flat 2.75 percent fee. Square's service is available inCanada.

PayPal added that it would charge merchants for the European PayPal Here device.