For those businesses that have been using mobile devices to run their businesses, their only choices in accepting credit or debit cards were either Square or PayPal. However, Amazon has decided to throw its hat in the ring as they have unveiled their own card reader. Called Amazon Local Register, the company is looking undercut the competition.
Mobile payment giant Square Inc. has announced today that it is now processing $10 billion in transactions annually, thanks to its widely adopted mobile payment infrastructure. Just a few weeks back the company made it known that it was raking in $8 billion annually, equating to a $2 billion increase in less than a month.
Similar to Google Wallet, users are required to have an application installed, whereas brick-and-mortar retailers must have the company’s physical checkout system to conduct transactions. Interestingly, it’s being reported that this figure doesn’t include payments processed by Starbucks, whom the company struck a major deal with earlier this year to install its systems in 7,000 stores.
Taking into account the amount of money that flows through Starbucks stores each day, it’s entirely possible Square could see its yearly processing figure double.
Source: Square (Twitter)
For small business owners or individuals selling goods or services, a common business challenge is the ability to accept payments from customers wanting to use a credit card. This is especially true for those who conduct business “in the field” or otherwise don’t have a fixed point-of-sale system. Square introduced a unique solution to this problem in the form of a mobile card reader that plugs into the headphone jack of iOS or Android devices. Users can then accept payments using the Square Register app on the device for a fee of 2.75% per swipe without having to jump through the normal hoops associated with establishing a merchant account with a financial institution.
Until now, one of the limitations has been geographic as Square was only doing business in the U.S. That changed today with Square’s announcement that they are expanding into Canada. Hit the break to read the full press release.
With all the talk about NFC, how about the ability to pay merchants by simply telling them your name? One of the most popular mobile payments service providers, Square, just reintroduced the Card Case app as Pay With Square. Card Case has actually been around for a while, but now it’s a whole lot better. With Pay With Square, the biggest change is the ability to automatically open a tab when you arrive, which means you never have to touch your phone. All you have to do is tell them your name and your done. You will also be able to find supported merchants quicker, save them to your favorites, and easily share them with your friends.
Hit the break for a demo video and download links
Square, a service that lets anyone with an Android or iOS device accept credit card payments, received $100 million from venture capitalist Kleiner Perkins Caufield & Byers.
This also brings Square’s valuation to $1 billion. This is the third round of funding. Back in January they raised $27.5 million and the company was valued at $240 million.
The first question is where are these values coming from? Right now there are 500,000 Square readers that have been delivered. There are 1 million transactions processed per day for a total of $3 million. Square’s take is 2.75% so they are generating $82,500 in revenue per day for a total of approximately $30 million annually. How does $30 million annually equate to a $1 billion valuation?
Square is getting some heavy financial support for the one company you’d most want to support you if you’re going to launch a mobile payment device, Visa. In exchange for the mountains of money Visa may be giving Square, Visa gets to sit on the advisory board for Square. This will certainly boost things for Square as they have apps and card readers compatible with the major mobile platforms, obviously Android being one of them. You can get the app to process mobile payments, and when you sign up for an account at Square, they’ll shoot you a free card reader for your device. The only cost to you is 2.75% of each transaction you swipe.
I can see pizza and Chinese delivery drivers carrying these, as mobile interac payments just take a standard fee, not a percentage of each transaction. All depends on how big the bill is I guess. A $30 pizza bill could cost you $2.00 for mobile interac, or $0.82 with Square.