PayPal is launching a new card reader that will accept contactless payments, Digital Spy reports.

The new machines will come with NFC technology built-in, benefiting hundreds of small business and market traders who accept payment through the system.

Like the previous chip-and-PIN-only reader, PayPal will take a small fee from each transaction and will charge traders a one-off fee for the new reader (although exact pricing and fees are yet to be specified).

The technology will also allow payments from smartphones using other services, including the company's own PayPal Here app.

PayPal will release its newest machine in the UK by the summer and plans to roll it out to Australia and the US.

At MWC this week, Samsung and Google both unveiled new mobile payment systems.