As the development of Internet-of-Things is moving towards large scale industry, such as logistic and manifacturing, there is a need for end-users to get involved in the process of creating IoT easily. In this paper, we introduce PaperIO, a paper-based 3D I/O interface, in which a single piece of paper can be sensed and actuated at the same time in three dimensions using the technology of selective inductive power transmission. With this technology, paper material with multiple embedded receivers, can not only selectively receive inductive power to perform paper-computing behavior, but also work as input sensors to communicate with power transmitter wirelessly. This technology allows the creation of paper-based sensor and actuators, and forms an Interent of Embedded Paper-craft. This paper presents the detailed implementation of the system, results of the technical experiments, and a few sample applications of the presented paper-based 3D I/O interface, and finally discusses the future plan of this research.