PayPal HereThere’s a new alternative to Square in town, and it’s coming from the minds of PayPal. Dubbed PayPal Here, the iPhone compatible electronic payment service will allow small businesses and casual sellers alike to accept practically any form of payment – checks, debit and credit cards and, yes, PayPal.

It works like one would expect. Merchants simply plug the plastic triangle dongle into the iPhone headphone jack, load up the free app and start accepting payments.

Merchants can accept payments by swiping cards in the card reader, scanning cards and checks using their phone cameras, or manually entering card information into the app, PayPal said in a press release. They can also send an invoice and set payment terms directly from the app.

PayPal Here doesn’t require a monthly account or set-up fee. Instead, sellers pay a flat rate of 2.7 percent (0.05 percent less than Square) for card swipes and PayPal payments. Users of the service will also receive a business debit card for quick access to cash, PayPal said.

The difference between PayPal Here and other electronic payment services, PayPal said, is the company’s “world-class fraud management capabilities.” The service is available today along with the Here card reader and merchant app for iPhone for folks in the U.S., Canada, Australia and Hong Kong. PayPal said there is an Android version in the works as well, which should be available soon.