Square is Jack Dorsey's take on mobile credit card payments. His idea allows anyone who has a mobile phone to accept credit card payments. Work on Square has gone on for some time and Jack Dorsey's company just went live. With Square, anyone can make their gadgets such as the iPod Touch or the iPhone become a credit card machine. All they need is the Square device which plugs into the audio input jack of the gadget.
Dorsey's product is aimed at solving the problem of small businesses who cannot afford to pay the high fees that credit card companies charge for credit card processing. Square supposedly charges lower than credit card companies, though by how much, it hasn't been made clear yet.
With Square, all the buyer has to do during a transaction is to sign the purchase on the screen of the gadget with their finger. They will then get a receipt either through a text message or through an e-mail.
The service that Square provides could be very useful for people who run small businesses such as booths or food carts in festivals, farmer's markets and other large gatherings. Traditionally, people who run such business cannot offer a credit card mode of payment to their customers. However, with the Square product, this is no longer a problem and, being able to offer credit card payment modes, these small businesses have the potential of increasing their income considerably. Even individuals can use the Square to accept payments with and make payments to each other without using checks or cash.
Square offers an innovative method of payment for small businesses and individuals. Those who have tried it have been impressed by the service. However, the technology is still in its infancy and one of the major hurdles that Dorsey and his start up will have to face up against sooner or later will be fraud prevention. Square does offer a service where people can create an account which will include their photos so that sellers can easily verify their identities.
At the moment, alternative forms of payment are enjoying huge popularity among consumers. Companies such as PayPal, a major online payment provider from eBay, are offering alternative payment modes to consumers which are more convenient and less expensive.
Roll out for Square is limited as of now but the company plans to make its service available to everyone by next year.