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?

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