PayPal has signed a collaboration with Microsoft to bring its ‘PayPal Here’ reader for Microsoft Surface and other Windows devices.

PayPal is updating its ‘Here’ hardware to work with EMV "Chip and PIN" cards in the US, after nearly three years of launching the service.

The EMV-compliant PayPal Here reader is already being used by merchants in UK and Australia and the service is expected to come to US later this year.

Merchants using Windows 8.1 laptops will be able to accept credit card, debit card and make Pay Pal transactions through the ‘PayPal Here’ SDK .

The company is also planning to make the service available for Windows phones including Lumia 635 and Lumia 830 and Surface Pro 3 tablet.

PayPal also announced that it is working on an updated ‘PayPal Here’ reader to support EMV and contactless transactions for small businesses.

It will allow merchants to accept payment through magnetic stripe card, chip card, or contactless payment form, including mobile wallets.

PayPal Here SDK for iOS and Android devices will also be launched in January, which is expected to let developers easily integrate ‘PayPal Here’ payment functionality into the custom apps.

This will help small business to use PayPal checkout benefits including acceptance of credit card, debit card, manage CRM and inventory, and create and maintain invoices.