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"PayPal, the payments company owned by auction website eBay, is to launch a new gadget in the UK that will enable small businesses and traders to take secure payments using a smartphone.  Launched last year in the US, PayPal Here is a pocket-sized chip &amp;amp; PIN payments solution that is intended to change &amp;#039;cash-in-hand&amp;#039; to &amp;#039;cash-in-handset&amp;#039; for British small businesses.   It means that businessmen and women working in markets, shops, restaurants, taxis or even in customers&amp;#039; homes can accept secure payments via credit or debit card, and don&amp;#039;t need to rely on cash or cheque.  PayPal Here will launch in the UK this summer, but analysts have warned the system must be fairly priced if it is to charm its target market.  PayPal handled $145 billion in payments in 2012, and has more than 123 million active accounts, including 18m in the UK. The company has been experimenting with mobile payments over past few years, and launched a special smartphone app in 2012 in partnership with fashion retailers.  PayPal believes that its new gadget is a &amp;quot;game-changer for small businesses&amp;quot;, as it enables them to take credit and debit card payments without investing in a full chip &amp;amp; PIN system.  PayPal Here is aimed specifically at businesses that usually rely on cash or cheques. Participating users pair the device with their smartphone to accept the secure payments. They pay an upfront fee to get PayPal Here set up, and then also pay a small fee for each transaction made.  Greedy Goat ice cream is a PayPal Here UK launch partner that trades at London&amp;#039;s Borough Market. Mark Thomas, from the firm, said that over reliance on cash can result in a loss in sales.  &amp;quot;Cash is king in the market, but people run out of cash very quickly, and we often lose sales because customers can&amp;#039;t face the long weekend wait at the ATM,&amp;quot; he said.  &amp;quot;PayPal Here is the perfect solution for us, as it gives our customers the chance to pay by card, backed by the reassurance of the PayPal name on the machine.&amp;quot; Cameron McLean, managing director of PayPal UK, added: &amp;quot;Cash and cheques have served us all well over the years, but businesses that rely on them risk missing valuable sales. &amp;quot;PayPal Here will let them offer their customers extra ways to pay, while saving them the hassle of taking cash and cheques to the bank.  &amp;quot;The arrival of PayPal Here in Britain is the latest example of how we&amp;#039;re helping UK businesses make the most of connected commerce: the new opportunities created by the merger of the online world and the high street.&amp;quot; Eden Zoller, principal analyst at Ovum, said that the UK is the &amp;quot;logical place&amp;quot; to expand PayPal Here, as it&amp;#039;s PayPal&amp;#039;s second biggest market after the US.  But he warned that the upfront price tag for the device will have to be competitive if is to appeal to small businesses and traders.  &amp;quot;PayPal has taken pains over the PayPal chip and pin device, which was designed and built in the UK and over a year in the making,&amp;quot; said Zoller.  &amp;quot;But it will come with a price tag and this will need to be competitive given the solution is meant for small businesses. PayPal says this will be the case - it is not looking to make money from the device itself.&amp;quot; He added: &amp;quot;Mobile credit card reader solutions appear to address a genuine need in the market - an easy and convenient way for small businesses to accept card payments without having to invest in costly credit/debit card processing equipment.  &amp;quot;The market for these solutions is becoming increasingly competitive and PayPal Here is not the first of its kind in Europe, where the likes of iZettle, Payleven and mPowa have already launched. But PayPal has an advantage in being an established, trusted payment provider with a high profile global brand.&amp;quot; "^^<http://www.w3.org/2001/XMLSchema#string>
<http://www.digitalspy.com/tech/news/a460804/paypal-launches-chip-pin-gadget-for-small-business/>