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Mobile wallet compatible reader unveiled by Square

Denny | June 12, 2015

The company has now added the ability to accept smartphone transactions through its credit card reader.

Square, the startup company that first drew attention to itself when it created a credit card reader that small businesses and merchants could use in order to accept credit card transactions, has now announced that mobile wallet transactions are being added to its accepted payment methods.

Though the adoption of smartphone payments isn’t expected to take off for a long time, Square will be ready.

The industry feels that there will still be years that need to pass before the mobile wallet becomes a mainstream form of payments transaction. Even though some giants have already offered their own versions of the technology – including Apple, Google, and various credit card and banking leaders – they have yet to take with consumers in any widespread way. That said, some feel – as Square likely does – that by providing merchants with a simple and affordable tool to actually accept these mobile payments, it may boost the feeling of familiarity with these transactions.

In fact, some have speculated that the mobile wallet may catch on even faster if enough processors are put in place.

Square - Mobile Wallet It was in exactly this light that Square had unveiled its own updated credit card reader that could also accept mobile payments through the wallet apps of various companies, such as Android Pay and Apple Pay, among others.

Square has said that it expects the new version of its mobile payments reader to be broadly available by the fall of this year. It functions wirelessly for small businesses and sellers who want to be able to accept contactless transactions over a smartphone or tablet. That said, it also makes it possible for merchants to be able to accept EMV enabled credit cards, that is the type of plastic card that has an added security chip embedded into it.

The new mobile wallet payments reader will be sold for $49. That said, there will be around 250,000 small and medium sized businesses that will be receiving the readers for free as the company launches the devices and hopes to widen their use right from the start.

Mobile payments acquisition of Caviar made by Square

Rebecca | August 14, 2014

This purchase will open up the opportunity for smartphone transactions in food delivery.

Caviar, a startup business that provides meal deliveries from high end restaurants, has now announced that it has been acquired by mobile payments company, Square, broadening the opportunities available to both organizations.

This will provide people who order their meals through the service with a new way to pay.

The option offered by Caviar, itself, is quite appealing to many consumers, who would like to have prepared gourmet dishes delivered to their offices or homes, as opposed to the quick delivery options that are currently available. That said, the acquisition by Square will bring an entirely new level of technology to the service, as these customers will be able to use mobile payments to be able to purchase their meals.

The acquisition by the mobile payments company is expected to be a deal worth about $90 million.

Mobile Payments acquisition While Square started out as a company founded by Jack Dorsey (of Twitter fame) and Jim McKelvey in 2009, that provided card reader dongles that turned smartphones and tablets into devices that could process transactions, it has progressed quite a distance since then. The company is always working to expand itself, as its revenue margins are quite slim (at 2.75 percent per transaction) even when taking into account that over 50,000 restaurants use the service. Last year, the company lost $100 million, and it is believed to be continuing to blast its way through cash.

A Yankee Group senior analyst, Jordan McKee, explained that “Initially Square’s business model focused on the low volume merchant, so scaling is certainly very difficult.” He went on to say that “Now, we’ve seen Square trying to find ways to generate sustainable revenues.”

As a part of this effort Square has spent the last year launching a number of additional mobile payments tools and services in order to better serve its client base as it opens up new streams of revenue. Among them, are Square Capital, which provides merchants with cash advances in the form of an interest loan, and Square Cash, which allows for rapid money transfers via email.