Square already processing $4 million in mobile payments each day
Mobile payments isn't just the next big trend. Based on Square's latest numbers, it's already here.
According to TechCrunch, Square is racking up "$4 million in mobile payments daily, and is on track to reach over $100 million in transactions in July." It already surpassed the $3 million-mark in May.
If you're not familiar with Square, the company produces a very small and compact module for swiping credit cards that fits on to a smartphone (iPhone or Android) as well as the iPad and iPod touch via the headphones port. Both the apps for Android and iOS are free as well as the Square credit card reader.
TechCrunch adds that the iPhone is in the lead with 45 percent in terms of Square usage, followed by Android at 31 percent and the iPad and iPod touch at 21 and three percent respectively. But the iPad is seeing the fastest rise with Square technology, which isn't that surprising given that the tablet is popping up at restaurants more and more to be used as both menus as well as for table reservation systems.
The cost comes in when cards are swiped, which is a 2.75 percent fee per charge. If a user chooses to enter the credit card numbers manually, that fee goes up to a 3.5 percent extra charge plus 15 cents per transaction. However, Square promises that it doesn't require contracts and monthly fees.
Thus, these mobile payments refer more to the business side rather than a consumer paying for a cup of coffee with a cell phone. Nevertheless, it's another sign that cash registers are taking a step back behind mobile payment apps and devices.
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- Intuit buys up Mobile Money Ventures to bolster mobile payments