Small businesses that are using PayPal to process credit cards but considering the Square service are in luck -- PayPal today unveiled a competitor to Square called "PayPal Here".
Like Square, the new service comes with a free card reader dongle. In this case, the card reader has been designed with a stabilizing "wing" that makes it much easier to swipe a credit card. PayPal notes that the reader comes with a free companion PayPal Here app that isn't in the App Store as of the time of publication. The iPhone or iPad that is used with the card reader needn't be online -- apparently the card reader can be used offline as well.
The merchant simply needs to tap in an amount, then hand the phone or iPad