crowdsourcing | storytelling | citizenship | social data

Peoples Insights Volume 2, Issue 20

Square

Peoples Insights
100+ thinkers and planners within MSLGROUP share and discuss inspiring projects on social data, crowdsourcing, storytelling and citizenship on the MSLGROUP Insights Network. Every week, we pick up one project and curate the conversations around it on the MSLGROUP Insights Network itself but also on the broader social web into a weekly insights report. Every quarter, we compile these insights, along with original research and insights from the MSLGROUP global network, into the Peoples Insights Quarterly Magazine. We have synthesized the insights from our year-long endeavor throughout 2012 to provide foresights for business leaders and changemakers in the ten-part Peoples Insights Annual Report titled Now & Next: Ten Frontiers for the Future of Engagement. In 2013, we continue to track inspiring projects at the intersection of social data, crowdsourcing, storytelling and citizenship. Do subscribe to receive our weekly insights reports, quarterly magazines, and annual reports, and do share your tips and comments with us at @PeoplesLab on Twitter.

Peoples Insights weekly report

Peoples Insights quarterly magazines

Peoples Insights Annual Report

Volume 2, Issue 20, April - June, 2013

Future of Money

Square

What is Square?
Square is a card reader and set of mobile apps that is reinventing credit card transactions. Square was founded in 2012 by Twitters Jack Dorsey, Jim McKelvey and Tristan OTierney. The technology is used by 4.2 million merchants in the U.S., Canada and Japan, and also brands like Starbucks and Burberry. Sonya Chudgar explains how it works: Square offers a small credit card reader that plugs into iPhones, iPads, and most Android devices. Businesses download the free Square Register app to 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 fixed 2.75 percent swipe fee. Square user Tori Wall commented: This app is awesome! Especially for small mobile businesses like craft vendors. Squares dependence on the smart phone or tablets battery and connectivity has an added advantage, as Leo Raudys tweeted:
Source: twitter.com/SAPMobile

Issie Lapowsky reported: In 2010, Square introduced the Card Reader, a 1-inch-square white dongle that plugs into a headset jack and, voil, turns any iPhone, iPad, or Android phone or tablet into a credit card processor. Beyond revolutionizing transactions for business owners and service sector professionals with the Square Register app, Square is also changing the way people pay for things with the Square Wallet app.
Source: twitter.com/LeoRaudys

Second, Square drastically reduces the cost of processing credit card transaction, enabling more people to start accepting credit card payments. The square reader and Register app come free of cost, leading to additional savings for small businesses. Business owner Adam Schneider pointed out: A standard POS and credit card system would have set me back about $5,000$10,000. But, like a lot of people, I already had an iPad. Issie Lapowsky reported: Square charges merchants just 2.75 percent per 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 fees and rates that can run in the ballpark of 4 percent per swipe, this transparency is the cherry on top. In addition, the company promises next day deposits while traditional players take up to 5-10 days to make deposits. Square user Elizabeth Haley commented: This app is amazing! The app is free, the reader is free, and the cost is very low. No hassle, just a nice deposit the next day!

Mobile transactions with Square Reader

The Square card reader offers two key benefits. First, the reader can turn any iOS or Android smart phone or tablet into a mobile card reader, allowing merchants to accept payments almost anywhere.

Source: squareup.com

Business analytics with Square Register

The Square Register app works on iOS and Android devices and functions like a traditional register. Merchants can create their own inventory, complete with product/service names, photos, order modifiers and prices. They can also categorize products and create a page of favorites for faster checkouts.

Source: Business Analytics

Business owners are consumers too

The wide and quick adoption of Square shows that business owners and service sector professionals are people first, professionals second. They are just as interested in using attractively designed apps and gadgets to track their data much like people use sleek apps like Mint.com to manage their money and gadgets like the Nike FuelBand to track their workouts. TIMEs Harry McCracken wrote: Consumers are used to a pretty high standards when it comes to hardware and software design these day, but point-of-sale systems have still been stuck in the clunky-and-ugly era. One of the multiple disruptive things about Square as a company is that its telling businessfolk with the Square Reader and now the Square Stand that they deserve better. Square redefines the PoS experience further with the Square Stand a stand designed to hold up an iPad-turned-register with an integrated card reader at the base.

Source: squareup.com/register

At the end of the transaction, customers can touch-type their signature on the app itself. When applicable, Square also displays information about their loyalty program (two more visits to earn 10% off). Square Register also acts as a business analytics solution. Merchants can view their transaction activity, review daily sale summaries, identify popular products and review deposit schedules via a dynamic dashboard with interactive graphs.

Source: squareup.com/register

Source: squareup.com/register

Volume 2, Issue 20, April - June, 2013

Future of Money

Square

In addition to acknowledging merchants design tastes, Square also understands their tech habits and environmental concerns. Square Register lets merchants download reports as spreadsheets and share by email and also supports print outs.

Source: squareup.com/register

Similarly, Square Register lets customers choose how they receive receipts via email, SMS or a print out.

Being able to track both cash and card transactions makes settling up at the end of the day so much easier! It is no longer just a credit card app, it is an entire point of sale solution! Square user Catherine Benns applauded the versatility: This app is excellent in cost and effectiveness, quality of equipment and capabilities of coexistence between computer and phone or tablet! Several users hail Square as the iPod of PoS technology, and hope it will become a one-stop shop for all their needs. Square user Tori Wall commented:

Source: squareup.com/register

Business Owners: Square is affordable, convenient, a great PoS solution

Heres what merchants have to say about Square. Square user Elizabeth Haley highlighted the convenience of the integrated analytics features:

I wish there was a way to link this to my website and be able to accept payments there too :-) Square user Jman987670 suggested: What I think will be a great idea is to add a optical barcode scanner in the app. You can use the iPad camera to scan product or you can use your iPhone to scan things have it sent to the iPad. Something
5

cool to have as a feature and would save money for small business. The three year old technology isnt perfect though. Users continually share feedback on each app upgrade, especially when small tweaks in design impact their earnings. Square user LeoLashes criticized the latest designs impact on tipping: I dont like the latest update. It does not give the option for the client to sign and give a tip percentage on the same page where they sign. They have to go to next page in order to do that and many clients dont. Others are unhappy with the tech-only approach to customer service and demand human-support since credit card transactions and money are involved. Blogger Ben Dwyer noted: Square excels at some things, but customer service is not one of them. The company goes out of its way to avoid verbal contact with customers, and contacting Square customer service is not an easy task.

Easier payments with Square Wallet

Square brings changes to customers transaction experience with the Square Wallet app. People can download the app from the Apple App Store or Google Play, set up their bank information and make purchases directly through the app. Matt Warman explains how the new cardless experience works: But the idea is a simple one: anyone who has linked their credit card to their account can identify themselves to a merchant, and use their presence in a shop to verify that they want to make a purchase. Put simply, a user tells a shop assistant who they are, and the system brings up an image of their face that allows the store to verify they are that person. Heres what people have to say about the experience.

Source: twitter.com/HollyGoldin

Source: twitter.com/kuzmeister

Source: itunes.apple.com

Source: twitter.com/kuzmeister

Volume 2, Issue 20, April - June, 2013

Future of Money

Square

But convenience isnt necessarily a good thing according to everyone. Elizabeth Dunn and Michael Norton, authors of the book Happy Spending caution the impact of instant gratification: Technologies that push payment into the future, making paying so convenient that its practically painless, put us in danger of overspending.

As more merchants begin using Square, locationbased search players like Foursquare are sure to take notice. Nidhi Makhija, member of the MSLGROUP Insights Network commented: It will be interesting to see how players like Foursquare react to Square. Will they see Square as a threat, or will they partner to explore synergies?

People: Square helps avoid unnecessary fees

Like merchants, tech savvy people too are aware that Square helps them save money.

Source: twitter.com/mirughhh

Square Wallet also acts as a discovery tool

Square Wallet also includes a search friendly directory that lets people identify Square merchants near them. CNETs Daniel Terdiman noted: One of the cool things about the Square Wallet app is that its got a nice set of built-in discovery tools. On the one hand, it shows you merchants who accept it, listed in order by proximity, and pulled from Squares directory of more than 200,000 businesses that accept the service. And on the other, it lets you search by business name or even by keyword like, say, cupcake or pizza.
Source: twitter.com/phaedryx

As more people talk about this alternative, brands may feel the pressure to support Square payments.

Source: twitter.com/shawnhorton

Implications for financial companies

In 2009, GigaOms Om Malik predicted that PoS device manufacturers would feel the brunt of technology like Square: My view is that Square (or something like Square) is going to disrupt the businesses of companies such as VeriFone and Symbol, a division of Motorola that makes point-of-sale devices. Verifone makes a $900 wireless credit card terminal vs. Square, which runs on a $299 iPod touch. Today, financial institutions both banking and non-banking are paying attention to the mobile payment space and even releasing their own solutions.

Source: squareup.com/register

Issie Lapowsky reported: Bank of America recently undercut Squares prices with its mobile card reader, which charges vendors 2.7 percent per swipe. And Visa signed a deal with Samsung to equip Samsungs next generation of phones with Visas PayWave app. PayPal, Intuit, and Groupon are also on Squares ever-growing list of competitors. Business Insiders Josh Luger pointed out: In-store mobile payments nearly quadrupled last year, card readers are building up real scale, and mobile payments as part of mobile commerce is exploding (PayPal alone processed $14 billion in mobile payments last year).

Edgy brands like Warby Parker too are experimenting with home-grown solutions.

Source: venturebeat.com

Volume 2, Issue 20, April - June, 2013

Future of Money

Square

Peoples Lab: Crowdsourcing Innovation & Insights

Peoples Lab is MSLGROUPs proprietary crowdsourcing platform and approach that helps organizations tap into peoples insights for innovation, storytelling and change. The Peoples Lab crowdsourcing platform helps organizations build and nurture public or private, web or mobile, hosted or white label communities around four pre-configured application areas: Expertise Request Network, Innovation Challenge Network, Research & Insights Network and Contest & Activation Network. Our community and gaming features encourage people to share rich content, vote/ comment on other peoples content and collaborate to find innovative solutions. The Peoples Lab crowdsourcing platform and approach forms the core of our distinctive insights and foresight approach, which consists of four elements: organic conversation analysis, MSLGROUPs own insight communities, clientspecific insights communities, and ethnographic deep dives into these communities. The Peoples Insights Quarterly Magazines showcase our capability in crowdsourcing and analyzing insights from conversations and communities.

Learn more about us at: peopleslab.mslgroup.com | twitter.com/peopleslab

For Peoples Lab solutions, contact

pascal.beucler@mslgroup.com