PayPal developing its own mobile card reader

In an effort to cut into the market share currently enjoyed largely by the tech startup Square, eBay's digital payment processing service is apparently developing its own mobile credit card reader.

PayPal will likely release plans for its mobile card reader in the near future as it has designs on undercutting the popular Square device that currently dominates the market, according to a report from Bloomberg News. It will do so by having its card reader carry a slightly lower transaction fee than Square – 2.7 percent of the purchase's value, instead of 2.75 percent – to appear more attractive to vendors.

PayPal is already trying to branch out into brick and mortar stores from being Internet-only, the report said. It also recently struck a deal to allow Home Depot shoppers to pay for items in the real world using their PayPal accounts.

Mobile credit card purchases are said to be more secure than traditional ones because of the way payment information is encrypted when it's transmitted. However, consumers should further protect their finances by regularly checking their credit reports for erroneous or unfair entries.