PayPal Here takes customer payments via iPhone/Android
Currently available for iOS and Android devices the product consists of an app and physical mag-stripe reader that plugs into the smartphone.
Merchants load inventory into the app, take an order from a customer by adding or subtracting items from the menu and process payment by swiping the customer’s credit card.
Merchant fees (in Australia) are 2.4% plus a flat $0.30 charge for swiped cards and 2.9% + $0.30 for manually entered credit card details.
Here’s a video demonstrating how it works.