I believe what you're referring to is PayPal Here. It's a POS system similar to Square - there's an app that you install on your smart phone or tablet and a card reader. (Note, to use PayPal Here, you will need a PayPal Business Account.)
As for processing fees - PayPal Here basic fee is 2.7%. Square's basic fee is 2.75% Both can do card not present transactions whereas you can manually input the credit card info which comes in handy for phone sales.
PayPal Here and Square are very similar in features however, Square has some advantages, for example PayPal Here does not have an offline mode meaning you have to have a WiFi connection whereas Square does have an offline mode should you be somewhere where you cannot connect to the internet or your internet connection is down. In addition, Square normally deposits your money the next day (unless it's a bank holiday) and they also offer same day deposits (for an extra fee) compared to PayPal Here which will sometimes hold your funds. With either product, make sure you invest in the chip reader - if you plan to use the free magnetic strip reader to start out with, that's OK however, the chip reader (which also does magnetic strips) is more secure and you have better protection should there be an issue with the customer's card.
Bottom line - they are both good products - it's a matter of personal choice. There are lots of comparison articles and reviews on the internet, all you have to do is search.
