PayPal Attacks Square

Hoping to compete with Square, PayPal (NASDAQ:EBAY) unveiled a triangular credit-card swiping device this morning that will allow any business or individual to accept credit card payments.

In addition to accepting credit cards, the small device, designed by Fuseproject, can also process cash and checks through an application for Apple’s (NASDAQ:AAPL) iPhone, as well as send electronic invoices.

In practice, users can use a new consumer app to find local businesses that accept PayPal, an eBay subsidiary, then purchase something and have the amount deducted from their account.

The rate for processing payments is a fraction of a percent lower than Square’s 2.75 percent, an advantage PayPal will leverage to try and break into Square’s $11 million worth of daily payments.

The new PayPal reader and app are both free and will begin shipping to merchants today. Any other individual or merchant interested in the product can sign up for one here.

To contact the reporter on this story: Patricia Lee at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com