Saturday, February 12, 2011
Enabling credit card payments
I am fascinated to see the adoption of technology. Square Inc is now offering any one with an iPhone / iPad (with an Internet connection) in the US the ability to accept credit card payments. This means cab drivers, electricians, mechanics, plumbers, flea traders and sunday market farmers can accept small transactions through credit cards. (oh, i am not sure if they would have an iPhone). I would be tempted to use one for the heck of it but the transaction fee is set at - 2.75% + 15 cents per transaction.
I think the transaction fees are slightly high but that is possibly because it is still trying to figure out proper risk management techniques. I think the image says a lot. and this is the example of only one of the companies doing it (the coolest one by far) there are other Payment Processors engaging in this niche area as well - Sage Payment solutions (looking at mid to small sized merchants), PayWare Mobile processing. Cool stuff overall...