Square processing $1 million dollars daily
By Wilson • Mar 3rd, 2011 • Category: Industry News
- Photo: @cdharrison / Flickr
Mobile payments company Square is beginning to gather some serious momentum. The company is reportedly processing $1 million dollars in transactions everyday, confirming that adoption is growing at a steady pace.
Impressive growth
Towards the end of last year, Square was processing a couple of million dollars each month, suggesting they’ve continued their steady – if not meteoric – growth. The $1 million (£615,000) milestone was tweeted by the company’s founder, Jack Dorsey. It’s almost poetic that’s the manner in which he revealed his startup’s milestone, in that he co-founded Twitter.
Transaction fee dropped
Last week, Square also announced that they were dropping their fee per transaction to just $0.15 (about 10p). The startup hopes this will goose the number of transactions and the number of subscribers using the service, which will in turn further increase the volume of transactions processed daily.
How does Square work?
What makes Square so unique – and of interest to us – is how it works. The service uses a dongle that plugs into the earphone jack on your iPhone, iPad or Android smartphone. Once plugged in with the Square app downloaded, you can process a transaction by swiping a buyer’s credit card right on your iOS device.
It’s effectively a replacement for a credit card machine that leverages the modern smartphone as its platform.
You’re not alone
Square isn’t alone in this space, though, with VeriFone making a play for the space with their PAYware system targeted at business. It also stands to reason that credit card companies like Mastercard, VISA and American Express won’t sit to the side while these new mobile payments solutions look to erode their business.
To some extent the same can be said for PayPal, who built their business on top of eBay, before expanding across the web and onto mobile platforms, too. We suspect mobile payments will become big business, and Square is already leading the charge with that.
Tags for this article: iPhone, smartphone




