Jack Dorsey, creator of Twitter is all set to release the new application to process credit card transactions on you mobile phone. The application, Square works with a device, the credit card reader which allows the user to use their credit cards with their iPad. The software for the iPad was released last month with the iPhone and iPod Touch Versions being released soon. The application is said to be compatible with Android devices as well. “Square intends to bring immediacy, transparency, and approachability to the financial world. We want to enable all people to accept payments instantly, with access to all the information they need, in a way that feels amazing and engaging” he said.
The freeware is available for download but the application does not work without the credit card reader. The credit card reader is a small device which is attached to the iPhone through the 2.5mm headphone jack. The device and the application are well made, user friendly and has many features like tracking sales online, making tax calculations, and SMS receipts etc. he only criticism with the application has been the inability to refund and delete transactions.
The application is considered useless without the device but Dorsey said on the Square blog, “Today, in addition to releasing clients for the iPhone, iPod touch, iPad, and Android devices, we are opening up our first cut at activating card processing and pricing, and sending out our first production batch of free card readers. All represent just the beginning of what Square is striving to become: a simple payment utility for everyone.”
Square works with any bank account for credit card transactions but these transactions involve special merchant banks which need to be paid. The application is free and the card reader is $1. Square will cost 2.9% of each transaction to use and they have said they would donate a penny to charity from their 2.9% cut in each transaction.
“I knew the concept was huge. The hardest part of any idea is getting started.” he said.
The square is yet to be tested on a larger scale and is complex process as Jack said, opening a merchant account is a difficult task and the maker is still not sure how many people will actually use the application.