Square Wallet

Square is probably the most formidable opponent to Google's push for the use of Google Wallet in retail stores. Not unlike Google Wallet, Square requires both the user and the retailer to have a special equipment -- an app for the former, and hardware for the latter -- to make everything work. And while Google has been struggling to get its infrastructure in place, even with MasterCard's help, Square seems to be taking off as the niche payment system right now. Square has just announced that it is processing over $10 billion in payments annually, and has increased its rate of transactions by $2 billion just this month.

TechCrunch notes that the $10 billion number doesn't even include payments processed via Starbucks, which just penned a deal with Square to set up its processing system in 7,000 stores. Maybe some of this pressure can get Google thinking about its Wallet strategy going into the future.

Source: @Square; Via: TechCrunch

 

Reader comments

Square is now processing $10 billion in transactions annually

9 Comments

At 2.75% processing fee that is a $275 million in revenue or about a $1 billion company disrupting the hard to disrupt payment space. Not bad.

my thoughts exactly. I was first skeptical of square, so I did some research about year ago and found that some credit card companies invested many millions to help get it started, so I figured it would be ok if they were willing to dump 10's of millions into a startup. It seems to have paid off. Also, I don't use it for business type stuff or anything just when someone owes me money and keeps trying to say "oh I don't got cash, ill pay you another time", so I just say I can take their card. When I do that I set the tax to 2.75% so I can get pretty much all of my money, with a small fee to the person who owes me for not giving me cash.

What's the difference between the hardware needed to process the Square payments on the store's side and the already widely implemented contact-less system by Mastercard? Why are we fragmenting what could be a universal payment system, where the user uses the service they prefer rather than being forced to use the service their favourite stores use?

Yet the majority of Android Tablets have headphone jacks that aren't compatible with the Square swiper. I know people that are forced to buy iPads when they'd rather have an Android Tablet. I hope the new Nexus' have rectified this. This is much more "major" than people think.

Because that's how things work. I'm a business owner and as such I choose which credit card processing company I want to use. The less I pay on processing fees, the more savings I can pass on to my customers. If you don't care for the way a company processes credit and debit cards, use cash, our shop somewhere else.

As long as you have a 3.5mm headphone jack, your good to go. If not for some reason, you can always manually enter the information off the card. Where is thus MAJOR problem?

Because the fee for a manually-entered CC number is substantially more than being able to swipe. Also, for purchases that go over $2K, you get the first $2K right away but have to wait 30 days for the balance. There are no such limits on transaction amounts if you can swipe the card.

Our technology makes everything fast and easy! Like square, where you can have your transactions via mobile, or through your ipad or iphones. Important thing is that you have to keep tract with all you have transact so that you can folow your payments.