What is Square?
Squareis a card reader and set of mobile appsthat is reinventing credit card transactions.Square was founded in 2012 by Twitter’s JackDorsey, Jim McKelvey and Tristan O’Tierney. Thetechnology is used by 4.2 million merchants inthe U.S., Canada and Japan, and also brands likeStarbucks and Burberry.
“In 2010, Square introduced the Card Reader,a 1-inch-square white dongle that plugs into aheadset jack and, voilà, turns any iPhone, iPad,or Android phone or tablet into a credit cardprocessor.”
Beyond revolutionizing transactions for businessowners and service sector professionals with theSquare Register app, Square is also changing theway people pay for things with theSquare Walletapp.
Mobile transactions with SquareReader
The Square card reader offers two key benefits.First, the reader can turn any iOS or Androidsmart phone or tablet into a mobile card reader,allowing merchants to accept payments almostanywhere.Sonya Chudgarexplainshow it works:
“Square offers a small credit card reader that plugsinto iPhones, iPads, and most Android devices.Businesses download the free Square Register appto link the credit card reader to their bank accounts,plug the one-inch reader into the device of their choice, and are set to accept credit cards for a fixed2.75 percent swipe fee.”
“This app is awesome! Especially for small mobilebusinesses like craft vendors.”
Square’s dependence on the smart phone ortablet’s battery and connectivity has an addedadvantage, as Leo Raudystweeted:Second, Square drastically reduces the cost ofprocessing credit card transaction, enabling morepeople to start accepting credit card payments.The square reader and Register app come freeof cost, leading to additional savings for smallbusinesses. Business owner Adam Schneiderpointed out:
“A standard POS and credit card system wouldhave set me back about $5,000–$10,000. But, likea lot of people, I already had an iPad.”
“Square charges merchants just 2.75 percentper swipe or, for merchants who swipe less than$250,000 a year, a flat fee of $275 per month. For small-business owners accustomed to hidden feesand rates that can run in the ballpark of 4 percentper swipe, this transparency is the cherry on top.”
In addition, the company promises next daydeposits while traditional players take up to 5-10days to make deposits. Square user ElizabethHaleycommented:
“This app is amazing! The app is free, the reader isfree, and the cost is very low. No hassle, just a nicedeposit the next day!”