A week after the accounting software company MYOB announced details of its mobile payments service, PayDirect, the payment services provider PayPal has upgraded its rival service, PayPal Here.PayDirect and PayPal Here are based on devices and apps that turn smartphones into mobile point of sale terminals. They are designed to allow tradespeople and other "businesses on the go" to take payments and issue receipts away from their business premises.PayPal Here was launched in 2012 but its reader was only able to read the magnetic strip on a payment card, not the chip. This was in breach of Visa and MasterCard security standards, which required that all point of sale devices be able to read magnetic strips and chips.Last week PayPal upgraded the service, introducing a reader that reads chips and magnetic strips. The new reader is paired with the smartphone via Bluetooth.Commonwealth Bank is also competing in this market, with a device called Leo.PayPal is charging merchants a one-off fee of A$139 for the card reader and transaction fees that range between 1.95 per cent and 2.9 per cent. There is no monthly fee.PayPal said its reader was fully encrypted to protect card informationMYOB offers three price plans. The base plan has no monthly fee but includes a charge of 3.2 per cent per transaction. The next level includes a monthly fee of $20 and 2.1 per cent per transaction. At the high volume end the monthly charge is $60 and the transaction charge is 1.35 per cent.MYOB offers two options: payment only, enabling SMEs to turn their smartphones into mobile point of sale terminals; and an integrated service, where the app is linked to the user's debtors and contacts files.