GS Logo
The Green Sheet, Inc

Please Log in

Banner Ad
View Archives

View PDF of this issue

Care to Share?


Table of Contents

Lead Story

Financing options proliferate in payments sphere

News

Industry Update

It's a Square world after all

Patent infringement ruling favors card brands

PCI SSC releases encryption update

NY attorney general files suit against POS leasing firm

Trade Association News

Features

Harnessing the power of questions

The art of social media speak

Selling Prepaid

Prepaid in brief

What prepaid can learn from the EPA

Plastic Jungle unlocks new meaning of money

Views

Mobile technology and the acquiring chain

Mustafa Shehabi
PayCube Inc.

Education

Street SmartsSM:
How to avoid that 'What just happened?' moment

Jeff Fortney
Clearent LLC

Experts reveal their social media strategies

Peggy Bekavac Olson
Strategic Marketing

Ace your sales interview

Alan Kleinman
Meritus Payment Solutions

Don't let your processor do this to you

Adam Atlas
Attorney at Law

Are you leaving your mark on merchants?

Steve Norell
US Merchant Services Inc.

New Products

Award-winning network security system

Phoenix PaySecure
Phoenix Managed Networks

Loyalty packs a punch

vPunch Rewards
vPromos Inc.

Inspiration

Go with the tech flow

Departments

10 Years ago in
The Green Sheet

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

May 14, 2012  •  Issue 12:05:01

previous next

It's a Square world after all

Square Inc. founder and Chief Executive Officer Jack Dorsey told PBS television talk-show host Charlie Rose, "Our aspirations are to carry every single transaction in the world." This was in an interview that aired on April 25, 2012.

Dorsey outlined for Rose his vision of where Square is headed both as a company and as a technology. He reported Square is now processing an annualized $5 billion through its payment system - up from $4 billion just one month ago. In addition to other competitive advantages, Square's 2.75 percent per transaction processing fee is "significantly cheaper" than traditional industry processors' rates, Dorsey noted.

Bringing Square everywhere

"We want to bring [Square] around the world," Dorsey said. "We want to be the point of sale for every merchant and we want to be the way people initiate a payment and start to pay [not only] their local shop but also the larger shops."

Dorsey said what his company really cares about is transforming people's relationship with money. "Money is a concept that has been around for over 5,000 years," he said. "It touches every single person on this planet and, at same time, every single person who runs into the concept of money feels bad about it. It feels like a burden. It feels like something they have to deal and we can take all that away."

Dorsey stated the best technologies "fade into the background, and they are relevant when you want to use them and they get out of the way when you don't. So one of the things we are most excited about with Square is that we've built this system called Pay with Square where consumers can download an application and can link a credit card and can see all the merchants around that accept Square and can go to one of them and simply open a tab."

The consumer experience

Pay with Square automatically displays the name and photo ID on the register of a merchant who accepts Pay with Square when a customer activates the service within 10 feet of the register. The customer doesn't need to handle a wallet, card, phone, glos PIN pad or money at the POS. The consumer can grab an item and take it to the POS, where an employee records the transaction. The customer can then walk out without having to complete the usual payment step. A receipt is automatically sent to the customer's phone.

Describing the customer experience, Dorsey said, "I don't have to bring my wallet out. I don't have to bring my phone out. The technology just disappears completely."

When Rose asked Dorsey about security and Square, Dorsey replied, "Security is always evolving. You build a block; someone breaks it. You build [another] block; someone breaks it.

"The cycle will never disperse. Security is not a question of the strongest barriers but of the policies and the expectations you set around the data and around the interaction and the realization it is always evolving. It always has to change, and we always have to make it better."

Industry view of Square

Payments industry consultant Paul Martaus of Martaus and Associates said he sent the link to Rose's Dorsey interview to friends and clients. In response, "a CEO from a major processor told me we all have a lot to learn from this guy," Martaus said.

Regarding Square's 2.75 percent per transaction processing fee, Martaus said, "You can't beat their rate." However, he noted it is not clear how the company will handle new fees such as the Visa Inc. and MasterCard Worldwide usage fees known, respectively, as the Fixed Acquirer Network Fee and the Annual License and Registration Fee.

Martaus believes the drawback to Square is risk. "Underwriting remains a big issue," he said, adding that few merchants know that if they reach a transaction threshold determined by Square, the company can lock the account and hold the money until it determines no fraud is involved in the transactions.

Martaus also pointed out that Square faces other significant challenges. "Square and companies like PayPal freely admit they want to change the way the American consumer thinks about money," he said. "But there are two things those companies don't have: one, feet on the street to enlist merchants; two, a consumer base other than social media."

For additional news stories, please visit www.greensheet.com and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

previous next

Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services