Are we now looking at the future of credit card payment solution? I mean, does the Square credit card app which is now available for iPhone, iPad and Android devices the future of mobile commerce?  It could possibly be, depending on the success of Square’s credit card payment system which just got out into the open, ready to offer an alternative payment solution not just for small entrepreneurs but big businesses as well.

How Does Square Work?

First, how does Square work really? What do you need to start accepting credit card payments using your iPhone and iPod Touches, iPad or Android devices. Of course you need any of those devices. Then you also need Square’s credit card swiper which you attach to your device’s headphone jack. The credit card swiper is free and even comes with an online dashboard to let you keep track of what you’ve sold.

Once connected to the device, you can now swipe the credit card, and the application will process the transaction.  After swiping you let the customer sign the transaction using a finger. Customers can opt to add a tip before entering their phone number or email address. Transaction receipts are delivered via SMS or email on the customer’s mobile device.

“With Square the goal is to get people in immediately, and make the transaction as smooth and simple as possible,” says Jack Dorsey, the brains behind Square and the cofounder and chairman of Twitter.

Will  It Take Off?

Right now, there are around 1,000 users who are testing the Square card swipers. Dorsey hopes to distribute it to millions more in three months. Some people are actually using the system now out of the pilot program.

The band Spoon for instance is using the Square app for selling their merchandise while on the road. Tipping Point is currently using 25 iPod Touches for taking donations at fundraising events.

Democratic congressional candidate  for New York, Reshma Saujani has been using Square to accept donations for her campaign.

Surely, Square’s credit card app is taking off. But it’s success will still depend on customer acceptance. It’s going to be a change of mindset which is pretty hard to achieve.

Originally posted on May 11, 2010 @ 5:39 pm