Paypal, eBay's subsidiary dealing with online payments, has now set its sights on in-store payments with Paypal Here, an app which lets small businesses accept card payments via iPhones.

Paypal Here, soon also to be available for Android, is targeted at retailers who have no need for a classic payment system. Using a detachable card-reader compatible with Apple smartphones, payments can be accepted direct from bank accounts as well as from Paypal accounts.

It may seem like just one more step in the development of mobile technology, but the new app marks a significant turning point in Paypal's strategy and in online payment methods in general. It just remains to be seen whether Paypal Here will be a commercial success in the already competitive field of in-store payment systems.