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Square intros flat-rate payment option at $275 per month, hits small business sweet spot
Square is most often pitched as heaven for small businesses, but that 2.75 percent cut per transaction is sometimes a problem for stores that are too successful. Enter a new flat rate option. Shops that don't take more than $250,000 a year in Square payments, or charge more than $400 in a given sale, can instead pay a flat $275 per month regardless of how many swipes they take. The deal makes the most sense for businesses handling more than $120,000 a year through the reader, establishing a definite limit to its usefulness; this isn't exactly for a budding jeweler (or Starbucks). Even so, the simplicity of the rate might be very alluring for companies that aren't keen on surprise costs or working out the math, and it's a contrast to the half-steps towards flat rates taken by VeriFone and other, more traditional outlets going mobile.
Square and Starbucks make deal for cellphone payments
You could buy a lot of coffee with $25 million; that's how much money Starbucks is investing in Square as part of a deal to incorporate the mobile payments startup into its store systems. Starting in the fall, Square's Pay with Square app will be enabled for Starbucks purchases, and Starbucks will begin processing all its credit and debit card charges through Square. While the existing Starbucks payment app will still be supported, the expansion of payment options with Square and the connection to Square's Directory of merchants using the system will push rapid awareness and adoption of the credit card acceptance platform. Square founder Jack Dorsey (profiled in Wired last month by Steven Levy) posted a letter to the company's website announcing the Starbucks deal. "By embracing Square, Starbucks has validated [Square's] ideas as powerful tools-not just for small businesses, but for smart businesses," he said. Square offers its free flagship card reader for iPhone and iPad with new merchant account signups, and has expanded into the point of sale space with Square Register for iPad. The iPad POS competes with similar systems from Shopkeep, Revel and POS Lavu. Other payment vendors like VeriFone and PayPal are offering iPhone-based payment tools parallel to Square's as well. [via TechFlash]
Security experts hack payment terminals to steal credit card info, play games
If a payment terminal could be forced into servitude as a crude handheld gaming device, what else could it be made to do? Researchers at the Black Hat conference showed just what mischief a commonly used UK PoS terminal could get up to when they inserted a chip-and-pin card crafted with malicious code. That enabled them to install a racing game and play it, using the machine's pin pad and screen. With the same hack, they were able to install a far less whimsical program as well -- a Trojan that could record card numbers and PINs, which could be extracted later by inserting another rogue card. On top of that, criminals could use the same method to fool the terminal into thinking a transaction was bank-approved, allowing them to walk out of a store with goods they hadn't paid for. Finally, the security gurus took a device popular in the US, and used non-encrypted ethernet communication between the terminal and other peripherals to hack into the payment device and take root control. Makes you want to put those credit cards (and NFC devices) away and stick to cash -- at least you can see who's robbing you blind. [Original image credit: Shutterstock]
PayPal buys Card.io visual credit card scanner platform, is neither Here nor there
Thought PayPal was done upping its mobile payment game when it unveiled its triangular Square competitor earlier this year? Think again. Despite Here being, well, here, PayPal's not satisfied having but one way to scan your plastic, and so it's snapped up Card.io. In case you've forgotten, Card.io gathers credit card info visually using a smartphone's camera -- no scanning dongle required -- to save fingers and thumbs from having to enter payment info manually. Oh, and for folks fearing that PayPal would pull the plug on other apps' access to Card.io's SDK, not to worry -- PayPal assures us that Card.io's technology will remain available to developers.
Square now available at Walgreens, Staples and FedEx Office
While a roster of competitors are trying to get their foot in the mobile payments door, Square's busy getting a foothold in retail stores. With Walgreens, Staples and FedEx Office locations now carrying the credit card reader, it's available at more than 20,000 physical shops throughout the US -- joining Apple, Best Buy, OfficeMax, Radio Shack, Target, UPS and Wal-Mart. Bringing it home from a brick and mortar establishment will set you back $9.95, but Square's sweetening the pot with a $10 rebate for new users. However, if your entrepreneurial snail mail-loving heart desires, you can still have one mailed to you by signing up online. Eager to start swiping plastic? Lookout below for the full press release.
iCache Geode claims title of first shipping iPhone e-wallet, asks 'who needs NFC?'
Apple has been sending mixed signals as to whether or not it will bring NFC to the iPhone for mobile payments, but iCache clearly isn't waiting for the technology to show its face -- the company just started shipping its Geode e-wallet. As we saw just a few weeks ago, the Geode simply rolls existing credit and debit cards into a proxy GeoCard that's scanned at the store to handle transactions. Although it demands a specially-made case with an e-paper screen and fingerprint reader, not to mention an app to manage the attached cards, the choice lets an iPhone owner buy goods at all the usual places instead of having to hunt down special terminals. We like the one-card universe it creates, although it's clear the shopper has to carry a lot of the responsibility for making this digital payment dream a reality: at $200 a pop, the Geode's wallet-slimming effect carries a premium, especially since it won't work with anything besides an iPhone 4 or 4S.
AMEX and Zynga team up for themed card, replace cash back with FarmVille rewards
Have you ever judged a friend's financial savvy based on the rewards yield of the cards in their wallet? Now you won't have a choice. For those of you that abhor free flights, detest comped hotel rooms and net severe displeasure from earning cash back, AMEX may finally have your plastic match. It's called the Zynga Serve Rewards card -- yes, the same Zynga that's behind time-sink cash cows like FarmVille, CityVille and CastleVille (?!) -- and it enables you to accrue "Zynga Farm Cash," which as you might imagine provides no financial gratification in the physical world. "FarmVille players now have the ability to plant an interactive Serve Money Tree in their Farms which will give them the ability to level up in game and earn Zynga Farm Cash for virtual awards redemption." We can't make this stuff up. The co-branded prepaid card is tied to a US currency-filled bank account, debit or credit card, and rewards will be assigned for your first five purchases of $25 -- at launch, with further incentives to come later this year. On top of that limitation, there's also a fairly outrageous fee structure (which effectively translates to 2.9 percent of each transaction when the account is funded with another credit card), detailed in full at the source link. Well, at least the card is colorful. Go tell that "Serve Money Tree" that water's on the way!
PayPal and Softbank announce new joint venture in Japan, mobile app
PayPal has joined forces with Softbank to bring its mobile payment system / digital wallet to Japan. PayPal Here uses an encrypted card reader -- like its BFF Square, and more recently, VeriFone -- to minimize users' cash dependency. There's also a redesigned app that makes it easier for customers to locate participating merchants while they're out and about. The $25 million joint venture targets small businesses, especially those using iPhones (though it also works just fine on Android), and will be made available to the Japanese masses over the next several weeks. We're sure the setup will be used exclusively by the forces of good to stimulate the local economy.
99Bill smartphone card reader pushes mobile payments for China, pretends it's never heard of Square
Jostling for attention among a crowd of China-focused smartphone card readers, 99Bill's card reader has now been officially revealed. It plugs into your headphone jack and communicates with apps on both iOS and Android. The familiar-looking reader supports both passcode and signature security -- China matches several European countries where passcode cards are the more common option. The company has already hooked up with three insurance companies, but it's keeping quiet on the rates it'll charge per transaction and any further expansion plans. 99Bills lays down why it should be your go-to choice for smartphone payments in mainland China right after the break.
Square's feeling good, on pace to take $5 billion in payments per year
Despite growing competition from PayPal, Intuit and Verifone, it appears that Square's business is still going gangbusters. The grandaddy of all smartphone payment systems is set to take $5 billion in payments this year, up from $2 billion a scant six months ago. According to company COO Keith Rabois, such expansive growth has been fostered by the fact that Square makes the cash from transactions available to merchants the next business day -- a feature greatly appreciated by small businesses. Clearly, Huey Lewis was right, and you can see what we mean after the break.
Intuit GoPayment goes live in Canada, more rectangular than Square
Looks like Canada just scored another mobile credit card payment system within its borders. It was back at CES when Intuit revealed its updated GoPayment dongle for our neighbors up north, and now the company's announced that the service has officially launched in the region. Once you're application is approved, you'll get the card reader for free without any contract -- and best of all, GoPayment works on a "pay-as-you-go" basis (3.3 percent if you enter the digits, 2.7 percent with a swipe). It's currently purposed for iDevices with a free downloadable app, accepting Visa and Mastercards, but Intuit notes that Android and BlackBerry compatibility is in the works. With services NetSecure and PayPal also claiming space in the country, we're still left to wonder when Square -- essentially the godfather of this type of thing -- will finally be joining the card-swiping party in the great white north. If you're curious for all the details or wanting to apply for yourself, head on down to the source link below. [Thanks, Mike]
Barclays releases PayTag: the NFC card you glue to your phone (video)
If you don't have a fancy NFC-enabled phone then it's hard to join the mobile wallet club. Fortunately, Barclays has introduced the PayTag that turns any phone into a contactless card. It's a square of plastic a quarter the size of a credit card that's sticky on one side -- yup, you just jam it on the back of your phone and hey presto, you can buy sandwiches, or any purchase up to £15 (£20 from June), without opening your wallet. The sticky squares will be rolling out exclusively to British Barclaycard customers over the next few months, although we're not sure what it'll do to the trade-in value of your handset.
Square gets a few more Chinese clones, Jack Dorsey may or may not be flattered
Never mind what PayPal has just unveiled today -- look at these mobile phone credit card readers from China instead. If you ask Square CEO Jack Dorsey, we're sure he'll have to a thing or two to say about these familiar-looking dongles (and not to mention the various weibo microblogging services that were inspired by Jack's Twitter platform). Coincidentally, all three of these pictures above showed up on Sina Weibo earlier today, albeit from different accounts with very little detail in each post -- we'd like to think they're trying to make a point one after the other. So who's behind these little plastic bricks from the Far East?Starting from the left (courtesy of Xiaomi Vice President Li Wanqiang) we have Lakala, a well-known Chinese payment service provider whose POS terminals are featured in major supermarkets and convenience stores. We spoke to the company's CEO Sun Taoran who assured us that this is a booming business in China, as credit cards are more popular than you'd expect these days (most large eateries, supermarkets and even karaoke bars in domestic cities will happily accept them); and of course, he'd certainly want a slice of that massive smartphone pie over there. The Beijing-based company also said its dongle will function even without a phone client installed, but it wouldn't further elaborate at this point. Expect to see Lakala's product launch in May.
PayPal may go after Square's mobile payments
PayPal is planning to take on Square with a new payment processing dongle, says a report from GigaOM. The dongle will supposedly tie into PayPal's already robust payment processing system and will be targeted towards small businesses. Smaller companies would be able to use this system to process credit card transaction at the office or in the field. PayPal says its technology will become "the future of commerce for small businesses." The eBay subsidiary is expected to unveil its new mobile payment system on Thursday.
Square's new Register app turns the iPad into a full-on point of sale terminal
Square continues to add functionality to its mobile payment platform, and the latest addition is its new Register app for iPad. The refresh brings a sleeker interface and greater Card Case integration along with analytics to break down sales by transaction type and chronology to track your business' performance. Additionally, you can set up custom permissions to limit employee access, create customer loyalty programs and there's an improved inventory system feature as well. Naturally, it still relies on Square's trusty card reader for swiping cards and charges 2.75 percent per transaction using Visa, MasterCard, Discover or American Express. Small businessmen, your payment chariot awaits, so check out a video of the new Square Register in action after the break.
T-Mobile brings Square to select small businesses, does the mobile payment thing
T-Mobile is throwing some of its weight behind the mobile payment movement this morning, becoming the first carrier to offer Square credit card readers to a handful of retail outlets. Under the company's new campaign, stores equipped with T-Mobile smartphones will be able to use Jack Dorsey's readers to finalize transactions from the comfort of their palms. This should come in handy for cash-only businesses, in particular, as T-Mobile emphasized in its announcement today. It's all part of the provider's lineup of small business offerings, though not every retailer will be involved at launch. To see the full list of Squared-up outlets, check out the source link below.
MasterCard reveals roadmap for our electronic payment future: EMV in, magnetic strips out
It's been over fifteen years since MasterCard, Visa and Europay developed EMV technology to make your credit cards more secure, but it has yet to really catch on here in the US. However, MasterCard has created a master plan to help usher in the EMV era and sound the death knell for the magnetic strip. Why? The EMV infrastructure is far more fraud-resistant because each transaction is authenticated dynamically using cryptographic algorithms and a user-specific PIN. That's why MasterCard plans to help build out the EMV POS infrastructure by April of next year and have its secure e-payment system functioning at ATMs, online and with its myriad mobile payment options as well. For now, the nuts and bolts of how the credit card firm plans to bring its plan to fruition are few, but more details will be forthcoming, and there's a bit more info at the source and PR below.
Card.io reaches out to devs, offers up credit card payment accounts to Joe normal
Who needs extra hardware to add mobile payments to iOS and Android? Not Card.io, who's unveiled a new SDK for it's visual card processing system alongside a payment app allowing anyone to accept payments from other users. Having already launched its scanner software development kit last year, the new SDK will open up the company's payment process to third-party developers. The new payment app works across Android and iPhone platforms, with no need to register as a merchant to access the feature. Although there are no registration charges, payments made through either PayPal or your bank account will have an additional 3.5 percent plus 30 cents nudged on top of each transaction. Going dutch has never been more (begrudgingly) easy.
Fake Apple billing email is circulating
Not surprisingly, scammers are targeting Apple customers with a fake phishing email asking them to update their account billing information. People who are new to Apple and probably received their first Mac or iOS device during the holiday season are particularly vulnerable to this scam. This group of customers would not be surprised to receive an email from Apple shortly after they signed up for iTunes for the first time. According to Intego, the email has the same silver coloring as Apple's website and includes the Apple logo to make it look authentic. If you click on the link within the email, you'll travel to a website that closely resembles Apple's website. Of course, there's a login on the fake page that'll steal your Apple ID and password if you make the mistake of logging into the site. On the next page, there's a form that'll steal your credit card information if you willingly submit this information to the fake site. The only way to tell that this email is a scam is to look closely at the URL contained in the email. The link in the email says "store.apple.com", but the underlying URL directs you to page named "apple.htm" on a server that does not belong to Apple. Depending on your email client, you only have to put you pointer over the link to see a pop-up box that'll expose this fake web address. A real link to Apple's website will end in "apple.com" and not some random name or number like the one shown above. To be extra cautious, you should avoid clicking on links in an email and go directly to Apple's website by typing in "store.apple.com" into your web browser. Once you've manually logged into your Apple account, you can then update your billing information, if necessary. [Via CNET]
Square snags one million merchants, liberates the cashless
For those of us addicted to plastic, "I love you" hardly holds the same clout as those three magical words: "we accept credit." Taking the dream one step closer to plastic payment monogamy is the mobile checkout service, Square. According to founder Jack Dorsey, the company has hit a milestone today, signing up over one million small business owners ready to swipe. For merchants, all it takes is a Square reader and an iPhone, iPad or Android to start processing the plastic of the cash-o-phobic -- practically rendering those ATM pit stops pre-taco run or flea market excursion useless.
