Square hopes to shake the foundations of how we understand business transactions with mobile payment technology.
The small, white Square was introduced a few years ago as the first plug-in card reader to enable small businesses and vendors to use phones and tablets to accept credit cards. But it’s turning into something that could change the way we pay for everything.
Square recently announced it will begin processing all credit card payments at Starbucks stores. Customers who opt to use the pay-by-name system will be able to pay simply by saying their name, which Square hopes will eventually eliminate the need for credit cards altogether.
According to a recent article in Slate, the company is attempting to alter the psychology of consumption by removing the psychological baggage surrounding money, “which is something everyone on the planet interacts with and we all feel bad about,” said Jack Dorsey, CEO of Square.
The fundamental idea is that Square technology will make money effectively invisible during a commercial transaction to more easily facilitate commerce for both the buyer and the seller. Dorsey believes the pay-by-name system will so greatly improve the way we pay for things that it will raise transaction volumes – people will buy more because purchasing is so much easier.
Many rivals like Amazon are attempting to move into, and ultimately dominate, the mobile payments sub-industry. A recent TechCrunch article speculates that Amazon may produce its own transaction tool, especially since it already has a payments infrastructure in place with Amazon Payments.
The problem with implementing mobile point-of-sale devices is getting businesses to invest in using them, and customers to start demanding them. The recent Starbucks-Square deal will most certainly bring attention to mobile payment technology on a larger scale and has the potential to make commerce something anyone can do, from anywhere, with any device.
Do you currently use mobile payment technology for your business? Do you plan to in the future? We want to know what you have to say.