PayPal Inc. plans to launch a chip-and-PIN version of its mobile card reader, called PayPal Here, in the UK this summer.
The original version of Here, launched last year, allows merchants to read magnetic-stripe cards through a swiper that attaches to a mobile phone. The Here app also allows the smartphone's camera to read the card, using technology from Card.io, a company PayPal bought in July last year.
Many companies offer similar card readers. Square pioneered the market for such devices, and it was quickly joined by the likes of Intuit, VeriFone, Fiserv and even Groupon. However, not many U.S.-based vendors support EMV chip-and-PIN cards.
When Square began offering its card reader in Canada in October, it did not add EMV-card support to its reader despite the country's use of the chip-card standard. iZettle, a company based in Stockholm, faced resistance last year from Visa Europe in some countries for not meeting certain requirements its mobile EMV card reader. VeriFone has an EMV version of its Sail reader, meant for use outside the United States.
The chip-and-PIN version of PayPal Here uses a separate PIN pad that reads the EMV card and communicates wirelessly with the merchant's smartphone.
The new device "will be available to select UK businesses over the coming months before becoming generally available this summer," PayPal said on its UK blog. PayPal is a unit of eBay Inc. of San Jose, Calif.
PayPal tested the chip-and-PIN Here reader with Greedy Goat, a vendor of goat's milk ice cream in London.