Square, one of the most forward thinking mobile payment services/device manufacturers is going (even more) mainstream. Square who recently closed a $100million round of funding has a tiny device that plugs into the 3.5mm audio jack on Android and iOS devices and allows SMB’s (and individuals) accept credit card payments. The caveat like many other transaction companies is the monthly fee, flat fee and percentage. Well Square doesn’t charge a monthly fee which can very often be a crippling hindrance for small companies wanting to accept credit cards and just this year they dropped the transaction fee, they’re trying to keep it simple and straight forward. Now there’s still a 2.75% fee on each transaction but that’s all their is. Like I said, Square is trying to keep it simple.
Small and medium businesses (SMB’s) can really take advantage of this. Like the hot dog vendor I met recently who was trying out Square for the first. He told me he switched because he was getting “killed” by the monthly fee, even when he wasn’t processing any transactions. He was the owner of the company and was testing the new service the day I stopped by. Funny thing was, when we tried to use an American Express card he almost asked for a different card (because Amex usually charges more then Visa/MasterCard per transaction) but then remembered it was just 2.75% on any and all cards being used.
I was so impressed with the hot dog vendor I’ve just been waiting for a reason to write about him. Square is a huge step forward for SMB’s it can empower the smallest store fronts and street vendors to exponentially grow their business’s. I can just imagine artists at street fairs and farmers at Farmers Markets utilizing this and potentially doubling or tripling their business plus saving money by not being charged a monthly and flat transaction fee. I always like to pay with my credit card (because I’m a miles junkie) and I hope to see more Square’s around in the future.
Are you a small business that uses Square? I’d love to hear your experiences with it, let’s chat on Facebook.