F5F6ZVHBEHK4 (Updated Technorati claim token, sorry for this being here, but it has to be in a visible post)
It’s going to be really interesting to see how this goes. Jack Dorsey’s new startup Square has now launched (just in the US at present) the Square app (iTunes link) that allows anyone with an iPhone, iPod Touch, iPad or Android phone to make easy credit card sales.
Anyone can accept credit card payments using the app combined with a small cube that plugs into the headphone jack, enabling credit cards to be swiped. The person paying signs their name with their finger on the touch screen and enters a phone number or email. A receipt is delivered via email or SMS.
The funds are settled with merchants each night instead of at the end of the month, and both the application and swiper are free. The app includes an online dashboard and analytics for the seller. The fee charged for each transaction is 2.75% plus 15 cents.
As far as security goes, users will be notified of any unauthourised use immediately, at the time of the transaction. A photo of the cardholder can also be associated with the account onscreen, so the seller can ID the cardholder visually at the time of purchase. The card number is not kept on file with the merchant, although an email or phone number is required for the transaction.
With so many touch screen devices around, and growing by the day, I think this form of mobile payment system has huge potential if it catches on. There are other companies also attempting to get into the mobile payment space too. Dorsey certainly has a track record of being involved in launching a successful start-up, not that Twitter is a profitable company yet, but tens of millions of people are using it.
Square has managed to get quite a lot of attention so far. It’s certainly got mine. I’m keen to try it out but I don’t expect it will be available in Australia any time soon.
What do you think of this new payment system? Do you think it’s something that you would find useful and would use on a regular basis?
