After a successful roll out in the USA and Australia, PayPal is to trial its PayPal Here mobile payment system in the UK. The UK will be the test-bed for the system before it is rolled out across the rest of Europe.

PayPal has found it difficult to find a way of working with Europe’s Chip and PIN system, which is why Europe has had to wait for the payment system. Despite this, PayPal has introduced a small hand-held device around the same size as a standard smartphone.

The new machine will allow traders to accept debit and credit card payments. The device will connect to an app from PayPal that runs on Android and iPhone operating systems. The payments can then be made almost anywhere, even from a consumer’s home.

There will be a small fee for customers using the system and PayPal will take a further fee for every transaction made. According to Rick Oglesby, a payments expert from the Aite group:

“For Chip and PIN devices, it’s not realistic to bring the cost down to zero… That tends to temper the demand a little bit. But it also weeds out really small merchants and individuals who won’t use it as much.”

PayPal has launched a video online to demonstrate how exactly PayPal Here will work when it comes to the UK.

The company has explained that PayPal Here is in response to feedback from small businesses. PayPal’s UK managing director explained that small business owners had requested a way to take credit and debit card payments in any place they chose to work, and at any time during the day.