Mobile Computing News

Photo: Square

Remember Square? The mobile payments company that Twitter co-founder Jack Dorsey launched to much fanfare? The week after its release, Verifone launched its PAYware service.

Differences between the two

The difference between the two companies could be reduced to three points: firstly, Square is a startup whereas Verifone is an established business. Secondly, Square can be used by anybody but PAYware is available to Verifone merchants only. Finally, Square was investing all their money into product development and Verifone was happily throwing money at big scale advertising by blanketing New York cabs with there service.

Check!

Based on this data alone it’s impossible to tell who would have ownership over the mobile payments industry in the short to long term. Now, Verifone looks to tip the scale heavily in its favour by teaming up with Apple Stores to sell its device.

Photo: Apple

From sometime in March, US-based iPhone owners will be able to walk into any Apple Store nationwide and pick up Verifone mobile payment solution, whereas Square is still in a private test phase. Merchants who want the ability to collect mobile payments who may not have the smartphone can pick up both the iPhone and the PAYware hardware at the same time, whereas Square is still in a private test phase.

PAYware is live right now, whereas Square is still in a private test phase. The pattern, really, indicates that Square has no move until they go public and the network effects of scale and finances Verifone has in its favour seem to be paying off.

Checkmate?

Photo: Twitter

However, the game is not yet up for Square. One needs to remember that through Twitter Jack Dorsey has connects and highly influential friends in Silicon Valley who can swing the tide for him significantly by publicly supporting Square over Verifone. Furthermore, one key difference still exists between the two companies: Square is for everyone whereas Verifone’s solution is not, making Square the PayPal to Verifone’s Visa Credit Card Merchant.

So talks of one company killing the other could be greatly exaggerated if the two can co-exist. What is clear is Verifone is in it to win it and if Square stays in beta for too long they may launch to an industry with barriers to entry that even Twitter buzz cannot upend. And, at that point, it will be checkmate for Square.