Why Mobile Payment Applications Like Square Are the Future

Jack Dorsey. If you’re anyone who’s into social media at all, I’m sure you have heard of him. Dorsey is a founder of both Twitter and Square. He currently holds positions as Executive Chairman of Twitter and Chief Executive Officer of Square. If you’re not familiar with the company, Square is a tool that gives merchants the ability use their tablets or smartphones to process customer credit or debit transactions. Currently, Square is used by two million merchants – most of them small businesses. Merchants can swipe a customer’s credit card on the Square device (given free to merchants) or manually enter credit card information. Merchants must pay 2.75% of every transaction to Square in order to be able to use the application. Square says that it will be successful because, overall, its costs are lower than traditional credit card processors.

Business Insider gives four reasons as to why businesses should be using Square instead of conventional credit card readers:

  1. The middle man is eliminated
  2. Flat fee – 2.75% per swipe or $275 a month
  3. Analytics are provided
  4. Fast processing

Personally, I think Square is an excellent use of the tablets and smartphones that most businesses and the digital marketing company already have. Using Square is even eco-friendly! Customers have the option of receiving an electronic receipt, which can cut down of vast amounts of paper. Using a tablet or a smartphone as a tool for making payments is a use for these devices that I would not have considered previously. Are there any other uses of tablets or smartphones that you can think of that are unexpected, but have worked out well?

Starbucks Card Mobile Reaches 3 Million Hits

“Starbucks now offers the nation’s largest mobile payment network,” said vice president of Starbucks, Brady Brewer. In January, Starbucks launched a new iPhone and Blackberry app called Starbucks Card Mobile that revolutionizes the way we buy coffee. Customers are now able to pay for their order via mobile phone by holding up the app’s barcode to the register’s scanner. This application was tested in September and was discovered to be the fastest and most efficient way for customers to pay, understandably. The past financial quarter was the best performing in the 40-year history of the company, according to Howard Schultz, Starbucks CEO. The Starbucks Card app accounts for 22% of all transactions, says Schultz. Schultz also noted that Schultz the Starbucks brand is number one on Facebook, over 20 million fans, and is also a top brand on Twitter and Foursquare.

Many other businesses will most likely follow in Starbucks’ footsteps and create mobile applications for their stores. The app allows for more efficient work on the employees part and allows for a better time efficiency for customers. By allowing customers to use the app, they place their order, scan their phone and receive their coffee. No more rummaging for credit cards or bill and coins, which is a godsend for many. This application will take the business world by storm and be implemented in many businesses

If you would have asked me when I was 10 years old, I would never have dreamed that we would be where we are today regarding technology. It is amazing everything that we have experienced. the iPad, iPhone, wireless computers and applications that do pretty much everything. I remember getting a Gameboy and thinking it was the smallest/coolest thing I had ever seen. Now, we can play games on phones, keep in mind, the phones are half the size of a Gameboy. I am eager to see what kind of technology we will have as I grow up.