Comes just days after iZettle announced the same technology.
PayPal unveiled its Square-like PayPal Here mobile payments service in March, which came in the form of a triangular dongle, enabling companies in North America, Australia, and Hong Kong to process card payments via iPhone.
The digital payments firm will now attack the UK with Here, but will invade the country with a Chip and PIN reader, which is the standard form of accepting card payments in the country. Selected Brit firms will be chosen for a trial run before the service goes on general release in summer.
The Here app is free to download without ongoing fees or contract, though there will be a charge for the reader and each transaction, which will be announced nearer the time.
PayPal is touting the solution to market stalls, shops, restaurants, taxi, tradesmen and beyond, using it as a '21st century till' that can send invoices and receipts on the move.
Cameron McLean, MD of PayPal UK, said: "This game changing product reflects the huge amount of time we spent talking and listening to small businesses. They are the core of PayPal’s business and they’ve told us that they want a simple, secure way to take card payments anytime and anywhere they trade.
"We’ve used that feedback to create what we think is the best payment device ever created. We’ve even included a ‘click to call us’ button in the app so our customer service team can be reached in one click just in case help is needed."
Of course, iZettle may have something to say about Here being called 'the best payment device ever created,' given that it revealed a mobile Chip and PIN reader just days ago. Meanwhile, pioneering firm Square has launched the Business in a Box payments kit.
Check out two videos below of PayPal Here in action.