Square, the credit card reader for iPhone, iPod touch, and iPad by Twitter co-founder Jack Dorsey, is now available online via Apple.com and will soon be available at Apple Retail locations as well.
Square is a revolutionary service that allows you to accept credit cards, using a reader that plugs into your iPod touch (4th generation), iPhone 4, or iPad along with a free easy-to-use app. There's no need for complicated contracts, monthly fees, or merchant accounts. All you pay is 2.75% per transaction. You can download the free app from the App Store. Square is currently available for use in the U.S.
Costs $9.95 (and you get a $10 credit upon sign up), which is crazy for anyone who remembers how complicated and costly is used to be to get merchant accounts or otherwise setup to handle credit card transactions. TechCrunch points out:
Clearly Square is taking a bit of a bath on the device sales here. Apple is probably taking some sort of cut from the transaction, and Square is giving merchants a $10 credit, so effectively, the company isn't really making any money. In fact, it appears that Square could be losing money on this. But an endorsement and placement from Apple could boost sales and usage for the payments device so perhaps all will even out in the end. Also, Apple managing distribution and shipping of Square devices means that the startup will be able to give users access to quicker and more efficient delivery operations.
Anyone in the US going to pick Square up and give it a try?