Credit card reader now on iphones, ipads and androids
Financial transactions seem to have gotten easier with CEO, Jack Dorsey(also known as the ‘father of Twitter’) having forayed into the financial transaction segment with the introduction of the Square, a small plug-in device that allows digital devices to function as a credit card reader.
Square has ventured into this field and is scheduled to open this Friday. It is a simple device which is a bit smaller in size when compared to a quarter, and can be easily plugged into iPods, iPhones, iPads, Touchscreen as well as Androids. It has a free download and this application aids in processing credit card transactions by consumers as well as small businesses. This application comes with no monthly charges or set-up fees and has no contract. However, merchants would have to pay 2.75% (of the purchase price) as well as 15 cents in order to swipe the card.
In the U.S. most people always leave their homes with their basic accessories such as keys, wallets, credit cards etc. Carrying cash is a rare occurrence, although credit cards cannot be used everywhere.
More than around 50,000 of these tiny devices have been shipped to consumers as well as small businesses all over the nation, in an attempt to test the feasibility and convenience of the device. It covered a wide spectrum of the people such as doctors, pizza delivery people, teachers etc.
Jack Dorsey 33, along with co-founder Jim McKelvey seems to have hit a jackpot and claim that the company will make $1billion through their business transactions by mid 2011. Jim McKelvey is a local who is a glass artist.
The firm (Square) is a year old and has the capital backing from Khosla Ventures as well as angel investors. The name has been derived from the famous expression ‘all squared.’ The motto of the firm is ‘0 to $60 in ten seconds.’
Square has forayed into the market which is estimated at $120 million (mobile payment) and is a new competitor. Several other tech companies are democratizing the payments by using a mass-market approach. They are making use of smartphones that use applications such as GoPayment as well as PayPal.
The markets however, are still in its initial stages and there is plenty of room for new entrants in the field. Analysts feel that the opportunities are in plenty for both established companies as well as the start-ups. They also feel that the newer technologies will expand rapidly since the markets are so fragmented and still emerging.
