The PayPal Reader 2 (formerly Zettle Reader 2) is an EMV-enabled payment terminal that accepts chip and PIN and contactless debit and credit card payments, as well as mobile payments through Samsung Pay, Apple Pay and Google Pay. It connects to the Retail POS app and your iPad via Bluetooth.

Payment processing with the PayPal Reader 2 is only available to merchants in the United Kingdom and the Netherlands. 

Initial setup

The PayPal Reader 2 is available for purchase through PayPal. Once you have created a business account through PayPal and have received your card reader, you can pair the reader to Lightspeed Retail. 

Note: To begin setup, the reader must be charged for a minimum of two hours.  

Setting location and currency

To process payments with PayPal, the location of your Retail account needs to be set to the United Kingdom or the Netherlands, and its currency set to GBP £ (pound sterling) or EUR € (euro). 

1. Log in to Lightspeed Retail as an administrator using your username and password.
2. Navigate to Manager > Settings > General Options.
3.   Under Location Customization, select the following:
   Location: United Kingdom or the Netherlands
   Currency: GBP £ or EUR €
4. Tap Save Changes.

Configuring the PayPal (Zettle) gateway

1. Log in to Lightspeed Retail as an administrator using your username and password.
2. From the Manager tab, tap Settings > Payment Processing.
3. Tap + Add Payment Gateway.
4. From the dropdown menu, select iZettle. 
5. The options for the gateway will now display.
   
6. Under Assign a Name, enter a name for the gateway.
7. If you have a multi-store account, under Select Shops, select all locations that will use the gateway.
8. Tap Save.
9. Tap Done to return to the manager screen.

Adding the PayPal Reader 2 to Lightspeed Retail

Once the PayPal gateway has been configured, log in to your PayPal account and connect the PayPal Reader 2 in Lightspeed Retail.

1. Log in to Lightspeed Retail as an administrator using your username and password.
2. From the Profile tab, tap payment terminal.
   
3. Enter your PayPal credentials and tap Log in.
4. Tap Card Readers > Connect Card Reader > iZettle Reader 2.
5. Power on the PayPal Reader 2 by pressing the power button. The battery status and the last three digits of its serial number will display on the terminal’s screen. 
6. Under Detected Card Readers, tap the PayPal Reader 2 that has the same last three digits as the PayPal Reader 2 in front of you. The Retail POS app will now connect to the PayPal Reader 2. 
7. Compare the number in the Retail POS app to the one on the screen of your PayPal Reader 2.
8. Confirm that the serial number displayed in Lightspeed Retail matches the serial number of your terminal and tap Confirm in the Retail POS app.
9. Press the green checkmark button on the PayPal Reader 2.

Your PayPal Reader 2 will now display insert card on its screen. You will now be able to check the reader’s battery level and version information in the card readers modal of the Retail POS app. 

If a software update is available for your PayPal Reader 2, we recommend tapping Update card reader.

Processing a test transaction

Now that your PayPal Reader 2 is connected to the Retail POS app, it's time to process a test transaction.

1. On the Profile screen, tap New Sale.
2. Tap + > Miscellaneous Charges.
3. In the Price field, enter 1.00.
4. Tap Add.
5. Tap Card.
6. Process the credit card on the PayPal Reader 2.
7. Tap Allow in the following alert:
   The Payment modal confirms that the payment is approved and closes automatically.
8. On the Credit Card screen, tap Finish Sale.

You're now ready to accept credit card payments from your customers with PayPal.