For those who are unaware, Square is an awesome mobile payment system that is being adopted by more and more stores all across the world. The application and hardware are prized for its simplicity and ease-of-use. Square is extremely attractive to small businesses that wish to incorporate a new technology that will help them with running their business, by simplifying the buying process for both business owner and the customer. The company was founded in 2009 by Jack Dorsey and Jim McKelvey but it wasn’t until 2010 that they launched their app. Now square is compatible with iOS and Android tablets and mobile phones. The company is serving consumers in the United States, Canada, and Japan. Additionally they have worked with some companies and are being adopted in some Whole Foods and Starbucks stores. Square makes money off of every credit or debit transaction by charging the business 2.75% of the total sale price. The company explains that they are a cheaper alternative to other credit/debit transaction machines. Square produces a variety of products depending on what the consumer needs. They produce small readers for iPhones and also make full cash registers that use a tablet. Square is also very efficient at data management and keeping track of inventory. People who purchase something with square are able to receive their receipt via email.
The company was adopted well early on and has received positive reviews by many, however as Apple, PayPal, and Amazon will soon enter the mobile payment market, the future is unclear as to who will come out on top. However this does not scare the investors of Square as they recently have given the company an additional $150 million dollars. The company initially saw success however Square lost over $100 million dollars last year. Despite that fact, the company was recently valued at $6 billion dollars. Investors have already dropped over $590 million dollars into the company so it is good to see the company be valued at such a high cost.
The future of mobile payments that work with various forms of technology is not clear. Square successfully entered this industry however the recent loss they incurred the past year could be worrisome. As Apple, PayPal, and Amazon roll out their services Square will be forced to compete with these much larger companies. Either way Square makes a very nice product that streamlines certain business processes.
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