What is Square? Square is a mobile payment platform that allows you to receive payments anywhere. All you need is a smartphone. Currently the Square will work with the iPhone, iPad, iPod (2nd Generation or later), as well as a number of Android devices. A full list of support devices can be found here.
How does Square work? It’s super simple. Simply plug the free Square device into your device via the standard 3.5mm headphone jack, open up the Square app, enter the amount you wish to charge and swipe the persons credit card. It’s really that simple. Once you authorize the charge, the person can sign for the charge – just like if you were to buy something at a store. A demo of both the iPhone and iPad app can be found in the video above.
Square can also handle receipts. Not only does it keeps track of all your transactions in an online control panel; it provides the option to send the payee a receipt via email.
You probably want to know if Square is safe, right? Well, according to Square they meet and exceed all industry standard security practices and compliance requirements.
When it comes to limits, Square has none. You can accept payment of $1 or $10,000. There are no limits. Which is extremely nice.
In terms of getting your money from Square, when you first sign up you are given an immediate settlement amount of up to $1000/week. Which means you will receive the first $1000 charged every week (almost) immediately. After that initial $1000, the rest will be deposited within a 30 day period. However, Square does note that they are looking for options to increase that $1000/week immediate deposit amount. According to their site, by accepting card payments regularly with Square and sharing more about your business with them, they will provide the option to increase the immediate settlement amount.
So how does Square compare with others within the same industry? Take a look at the chart below.
Sqaure is targeted towards everyday people mostly, but it definitely has its benefits for small businesses as you can see from the chart above. I see a lot of potential in Square as well as in the entire mobile payment industry. Keep in mind it took several months for me to receive my Square, so if you sign up today you may not get one right away.