Visa has made an undisclosed investment in payments startup Square in exchange for a seat on the firm’s board of, Reuters reports. Square is a portable credit card reader that was created by Twitter co-founder Jack Dorsey. It allows iPhone, iPod touch, or iPad owners to charge for goods and services on-the-go, but came under some scrutiny earlier this year when VeriFone’s CEO slammed the product in a blog post. On April 21st, Apple and Square announced that the Square credit card reader was available online and in Apple Stores nationwide for just $9.95. More →
On Wednesday, Square’s CEO Jack Dorsey announced that the firm’s iPhone credit card reader — also supported by the iPad and iPod touch — is now available in all 235 U.S. Apple Store locations, and online, for $9.95. The mobile payment solution allows business owners to quickly charge for products and services wherever they have an iOS device and a data connection. Square accepts Visa, MasterCard, American Express, and Discover cards, and the company takes a 2.75% cut of every swipe. If you sign up for Square service online, Square says it will send you the first reader for free. More →
Yesterday, we told you about VeriFone’s unprovoked, online vendetta waged against mobile-payments startup Square. VeriFone CEO, Douglas G. Bergeron, wrote and open letter to humanity and created a YouTube video declaring that consumers were in “dire risk” because of Square’s card reader. Although the accused company did not respond to requests for comment yesterday, Square’s CEO has published a letter of his own, downplaying VeriFone’s concerns, while taking the proverbial high-road.
“Any technology—an encrypted card reader, phone camera, or plain old pen and paper—can be used to ‘skim’ or copy numbers from a credit card,” writes Jack Dorsey, Square’s CEO. “The waiter you hand your credit card to at a restaurant, for example, could easily steal your card details if he wanted to—no technology required.”
The letter goes on to reassure Square users that the company is “constantly improving the payment experience to enhance security” and that it’s partner bank, JPMorgan Chase, “stands behind every aspect” of the company’s service. Hit the jump to read the full context of the rebuttal. More →
If you are not familiar with Square, it is a mobile payment service (hardware and software) that hopes to change how mobile transactions are processed. Now available for iPhone, iPod touch, iPad, and Android devices, all you need to get going and accepting credit card payments is Square’s credit card reader. If you have been down the merchant account road before, you are probably asking how much the device costs, right? Square is giving out the reader, which plugs into the 3.5mm headset jack on your smartphone, for free. Their transaction rates are also pretty competitive at 2.75% of the transaction + $0.15 for all major credit cards. If you have always wanted to pay that shady guy off of Craigslist with plastic instead of paper, your dream might finally come true as this propagates throughout the wild. Check out a video of the service after the jump! More →