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Square gets financial backing from Visa, asks to see some ID
Everything's coming up Jack Dorsey these days. Last week Apple started stocking Square's iPhone credit card readers in its 235 US retail locations, and now, according to Reuters, Visa has put its plastic where its mouth is. The credit card giant has invested in the personal payments startup, scoring itself a spot on Square's advisory board in the process. No word on how much Visa is actually dropping on the company, but one thing stands to reason: it probably didn't make the deposit via Verifone. If you would like to invest in a Square reader, it'll cost you a lot less -- the company is still offering smartphone plug-ins for free on its site.
Apple Stores stocking Square credit card readers
Jack Dorsey's über-popular credit card readers got a big thumbs-up from Cupertino this week. Square's devices are hitting Apple's 235 US retail locations and Apple.com for $9.95 a pop -- plus the 2.75 percent that the startup takes off the backend each time you use the reader -- or you can always just sign up for a free one over on Square's site. The iPhone / iPad / iPod touch plug-in accepts Visa, MasterCard, Discover, and yes, even American Express. The CEO of VeriFone will no doubt have plenty to say about the matter. Update: It turns out you get a $10 redemption code in the box when you buy a Square reader at an Apple store, so it is still technically free (just not, you know, when you buy it). [Thanks, Michael]
Discover cardholders can send money to anyone with a cell phone, email address
With NFC payment systems just starting to roll out in the US, it'll be awhile yet before you can cut up those credit cards for good. But in the present, at least, you can use your handset to make sure you don't get stuck with a $100 bar tab... again. Discover just announced that it will let its cardholders send money to people in 60 countries -- so long as they have either a cell phone number or email address. As AllThingsD notes, Visa and American Express have hatched similar plans, though Discover is the first of the bunch to partner with PayPal. While people sending money don't need PayPal accounts, people receiving moola do -- or, at least, they must be willing to create one. For senders the service is free and, in fact, they get 0.25 percent cash back for the first $3,000 exchanged. As for Discover, a smaller player than Visa and MasterCard, it hopes some of PayPal's 230 million customers will sign up for a shiny new credit card while they're at it.
VeriFone's FUD meets Square's QED
Yesterday, VeriFone (a $4.2b company) launched a harsh public attack on upstart rival Square (a less-than-fifty-people, $37.5m in funding startup). You may remember Square from previous coverage on TUAW or its impressive advertising last year. So what's going on, exactly? The basic gist of the Square service is simple. It sends you a free little reader doohicky that you plug into your iPhone or iPod touch's headphone/mic port, and you get an accompanying app for free from the App Store. When you want to charge money from someone's card, you swipe it, enter the amount, and they sign for the payment on your screen. Square takes a transaction fee of a flat 2.75 percent for a swiped transaction (a little more if you manually key the card details in), but there are no other fees of any kind -- not on the hardware, nor is there a monthly service fee. There are also no credit checks or complicated paperwork to sign up for Square in the first place.
Square mobile payment system gets simpler pricing, keeps angular shape
If you hate doing math and you run a small business then surely you've looked longingly at mobile credit card systems like Square's longingly. No handling of cash certainly would make life easier, but Square's system of fees and surcharges weren't exactly easy to figure out themselves. Now the company has simplified things, dropping the $.15 per-transaction fee for swiped purchases, charging a simple 2.75 percent on each transaction. If, however, that transaction is being made without swiping the actual card the $.15 transaction fee sadly comes back, but the percentage fee has gone down from 4.0 percent to 3.5. So, a little less of your handiwork will be absorbed by the man. [Thanks, Brent]
Dynamics' credit card-based computing platform makes what little money you have more secure (video)
Some folks are trying to replace your credit card with your cellphone, while Dynamics, Inc. is among those trying to make credit cards better. And you know what? We seldom get excited by such things, but this video from the CES New York press preview has us seriously itching to upgrade our plastic. Card 2.0 is the computing platform powering the new Citi cards that re-write the magnetic strip depending on whether you want to spend you cash or your rewards points. The technology fits snugly in your credit card, is waterproof, has a battery life upwards of four years, allows multiple accounts on a single card, and even can be used to require a PIN before displaying the card number. This is some pretty awesome stuff indeed -- but don't take our word for it! Get a peep yourself in the video after the break. [Thanks, Dave]
Redemption credit card puts points toward purchases, is destined to frustrate
Look up. That credit card right there is a brilliant concept that'll likely cause quite a few headaches in practice. Dynamics, which makes its ends by coming up with new ways to get the general populace into more debt, has just made public its Redemption payment device -- a newfangled card with a few LEDs, selectors and the ability to let users put their earned points toward any given purchase. The idea goes a little something like this: you roll up to the Old Navy checkout counter, remember that you have 4,300 points logged, and decide that you'd like to cash 'em in towards the purchase of your new threads. You tap the "Request Rewards" side of your card, swipe it and watch as your points balance and total monies owed dwindles. Currently, Citi is trialing these with a small group of consumers, with a larger US trial expected to get going next month. There's no mention of how the LEDs stay lit (or how the battery stays charged), nor any indication of how long these selector buttons will hold up over time. We also have no idea how you'll be able to easily check your point balance or split payments between points and dollars, but hey, at least there's a beautiful opportunity here for an accompanying mobile app. %Gallery-104451%
Mophie and Intuit release Complete Card Solution payment system for iPhone
Square has made quite a few headlines with its in-progress payment system for the iPhone, but here's that reader developed by Mophie (known for their battery pack add-ons) and serviced by Intuit. It's called the Complete Card Solution for iPhone, and it's costlier than Square's extremely low cost of entry where all you need to start taking payments is a free account, free app and free card reader. This one runs $179 from the get-go; there's also a $12.95 charge per month, on top of the per-payment fees that Intuit will take out. But Intuit's reader is a little more friendly for big sales teams (allowing for 50 users on one account), and the transaction charge runs only about 1.7 percent as compared to Square's 2.75 percent. So if Intuit has a target, it's probably larger businesses -- Square's reader is much more ad-hoc and easier for the smaller companies and individuals to use. There is one other issue, however -- while Square's reader just plugs into the headphone jack (meaning it can be used by any iPhone, and even some other smartphones), Mophie's clearly fits all the way around the phone, which means it's currently available only for iPhone 3G and 3GS. Still, if you don't need one set up for the iPhone 4 right away, the Mophie reader is reportedly on Apple store shelves now.
App Store chicanery powered by iTunes account fraud
It's a shame to have to point out such underhanded behavior on a holiday weekend, but we got a heads-up from developers Alexandru Brie and Patrick Thomson that something was seriously amiss in the Books category on the App Store. As detailed on Alex's blog and in this follow-up from The Next Web, it appears that at least one Vietnamese developer (mycompany/Thuat Nguyen) has gamed the category so that 40 of the top 50 entries are all apps from their stable. It's possible that another two or three developers have tried the same thing, although to a less extraordinary degree. As Alex points out, at least two of the reviews for these apps indicate that the apps were purchased against the buyer's will, with hacked iTunes account credentials. The ongoing MacRumors forum thread here indicates a possible spike in iTunes fraud, with major purchases being charged against unsuspecting users' accounts. Alex also notes that Apple's response team is already looking into the issue. If you have unexpected charges on your iTunes account, be sure to notify your card issuer or bank immediately, and then send word to Apple. It may take a bit longer to get help during the long weekend. Updates: 9to5Mac points out that the offending apps have been pulled from the store. Arnold Kim at MacRumors reminds us that compromised iTunes accounts have been reported for years, and it's not clear that the current circumstances represent a spike in malicious activity.
Visa and DeviceFidelity working to bring mobile payment functionality to iPhone
This ain't the first rodeo for Visa and DeviceFidelity, and if we had to guess, we suspect it won't be the last. Just a few short months after teaming up to bring contactless payments to any mobile with a microSD slot, the two are at it again -- this time aiming for the oh-so-tantalizing iPhone market. Reportedly, the tandem is toiling away in an effort to concoct a protective iPhone shell with a secure memory card that hosts Vista's contactless payment app, payWave. As it stands, the product would only function on the iPhone 3G and iPhone 3GS, leaving upcoming iPhone 4G / HD / Barhopper buyers out in the cold. As with any other payWave-enabled handset, this would allow users to simply tap and go when checking out, a process that our pals over in Japan have had down for centuries now. If all goes well, market trials of the payment-enabled iPhone are set to begin this summer, or approximately six months too late for anyone to seriously care.
Buying an iPad, one month later
On Tuesday, I finally joined the ranks of iPad owners. It was a relatively smooth experience, but there are some things that caught my eye: If you want certain models, you're going to have to wait. The Apple Store at Chandler Fashion Center only had the 64GB Wi-Fi model while the Biltmore Apple Store had 16GB and 64GB Wi-Fi models. Since I only wanted the 16GB model, I walked away a happy customer. But, if you want a 32GB Wi-Fi or any of the 3G models, you're pretty much out of luck. If in doubt, though, call ahead if you can. If you make a spur-of-the-moment decision and your store is out, see if the Apple Store you're at can call another location and check on their stock. Of course, this method only works when you live in an area that's lucky enough to have more than one Apple Store. Independent resellers or Best Buy stores are also worth a try.
Cambridge University finds credit card security flaw, uses the money for beer pong supplies (video)
Oh, those crazy kids at Cambridge University -- when not doing keg stands or playing Hacky Sack in the quad they're hard at work proving the vulnerability of the EMV verification used in credit and debit cards (or as it's called across the pond, Chip and PIN). We won't go into too much detail (because we don't have much detail) but a flaw has been discovered that allows one to convince the terminal that a card's PIN has been entered -- and you know what that means: free money! All you really need to pull it off is a fake smart card connected to a card reader containing the stolen card and some fancy software. (Place the contraption inside a hat box or bowling ball bag if you want to be slick.) What could be simpler than that? "We think this is one of the biggest flaws that we've uncovered - that has ever been uncovered - against payment systems, and I've been in this business for 25 years," said Professor Ross Anderson from the school's Computer Laboratory. Sure, this is a proof-of-concept thing, and not yet a clear and present danger, but we have faith that the hackers will see this one through. Maybe we weren't crazy to bury all that gold in the backyard after all! British TV news (with the appropriate dramatic music) after the break.
Square opens public trial for iPhone payment system
Eager to get in on the whole "using your iPhone to pay for stuff" revolution? Too bad your wallet is vehemently disagreeing right now. At any rate, the folks behind the Square iPhone payment system have finally seen fit to open up their solution to the public, but only in the form of a pilot. If you're interested to be one of the few scratching the impulse-buy-itch with a cellphone dongle, hit that source link to sign up. For the rest of ya, there's an explanatory video after the break.
Kevin Rose demos Square payment system for iPhone
Digg's Kevin Rose is the newest investor in this Square iPhone payment system that we've been seeing lately, and as you can see above, he's demo'ed the unit for everyone over on YouTube. It works as we've heard: there's just an addon that you plug into the iPhone's headphone jack, and then an app takes information from the swiper, and transmits it out for an actual credit card payment, with a finger doing the signature. The app, as Kevin says, will even upload GPS information, so you can make sure that payments are happening in the right place. Unfortunately, what he doesn't mention is the actual price to get payments up and running. Square's website says that there's "no contracts, monthly fees, or hidden costs," but they've got to pay for the system somehow, so you'd expect there to be a fee for setup, for the accessory, and then a fee per charge through the system, but we haven't heard what any of those will end up being yet. Depending on how steep they are, this could be a gamechanger -- accepting payments anywhere, any time, with an online record and receipt for each one, no cash involved. Would be incredible for small business owners, and probably a lot of other sales folks, too.
Square payment dongle demoed for iPhone toting hippies and you (video)
Ever wonder what the offspring of an after-party Twitter and Digg copulation might look like? No, well aren't you pure and normal. Regardless, we fantasize about it all the time but never expected this iPhone payment dongle to be first from the litter. Square is Jack Dorsey's (Twitter co-founder) new startup that now has Kevin Rose (Digg founder) on board as an investor and YouTube pitch man for the prototype payment device that plugs directly into the iPhone's headphone jack. We've covered Square before but this is the first video that clearly demonstrates the full capability of the credit card swipe system on a live device. A compelling proposition for receiving cashless payments if you're a small business owner looking to exploit irresponsible credit card debt or just the average Joe hocking goods at a garage sale, farmers market, or Craigslist. Assuming of course, Square's cut of the transaction isn't too egregious. Demo after the break.
Mophie iPhone credit card reader coming to a CES near you
iPhone accessory maker and recession antidote regular Mophie is about to make the most buzzworthy move of its short history by offering a credit card reader and accompanying transaction app for the Apple handset. Positioned as a direct competitor to Jack Dorsey's Square iPhone Payment System, Mophie's solution looks to be integrated into an iPhone case -- making it possible to keep the reader on permanently, albeit at a slight cost to your device's aesthetics. The decidedly cube-shaped Square system has a less ergonomic design, but we suspect that the winner (if either of these two succeeds) will be primarily determined by the usability of the app and affordability of the service. Look out for more info to emerge at some point during the maelstrom that will be CES 2010.
Accept credit card payments on your iPhone? Then there were two
While Square, the new venture from Twitter co-founder Jack Dorsey that adds a credit card swipe reader to the headphone port of an unsuspecting iPhone or other smartphones, was busy demoing at Le Web, one of the heavyweights of the payment processing market was busy prepping an announcement of its own. Earlier this week, VeriFone announced PAYware Mobile, a combination iPhone/iPod touch app and swipe card reader that will enable merchants to accept and process credit cards on the move. The widget is scheduled to ship in January and will be free with a 2-year contract with VeriFone (no word on the pricing plans yet the Los Angeles Times notes that users will pay an activation fee of $49, a monthly fee of $15 and a per-transaction charge of 17 cents). The reader is supposed to encrypt credit card data in hardware so that the iPhone never sees the raw card number, and the app will capture signatures using a stylus (at least that's how it's illustrated now). Check out the video above for a brief demo. It should be very interesting to see how these two hybrid solutions make their moves into the payment ecosystem. Square seems to be aiming at more ad-hoc usage (artists, coffeehouses, etc.) for people who don't have merchant accounts, but VeriFone is all about big retail. Room for everyone! TechCrunch happened to catch a reaction interview with Dorsey today, it's worth a look. [via Engadget]
Square iPhone payment system gets itself a website, showcased in public
Twitter co-founder Jack Dorsey and the quiet startup formerly known as Squirrel are finally opening up a bit. The company now called Square, as we noted back in October, has launched a website for its iPhone payment dongle, although it's still in somewhat private beta testing. TechCrunch managed to catch up with Dorsey, who gave a brief overview of the product and then showed it off by charging $4 for a cup of coffee -- so it goes in San Francisco. See Square in action after the break.
Twitter founder Jack Dorsey's Squirrel project revealed... as the Square iPhone Payment System
tweetmeme_url = 'http://www.engadget.com/2009/10/17/twitter-founder-jack-dorseys-squirrel-project-revealed-as-th/'; tweetmeme_source = 'engadget'; Remember the Square iPhone Payment System we told you about back in August? If you'll recall, the device -- which involves an iPhone app and associated dongle -- enables an iPhone or iPod touch to become a kind of mini credit card reader, allowing payments to be taken on the spot, no matter where you are or how big (or small) the transaction may be. When we'd first reported the device, word on the street was that it was only being alpha tested around New York City, and there wasn't much else to say. Now, we may have a little more insight on just where this device is headed, and who's behind the project. Jack Dorsey, the man who all but built Twitter in a matter of two weeks, has been working on a half-secret start-up project since around May. His new venture -- dubbed, funnily enough, Squirrel -- is based around the concept of using the iPhone as... yep, a portable, personal cash register; essentially the exact device which Square has created. And that's no accident. In the images we ran of the Square system, you can see a domain name on a receipt: squareup.com. Squareup.com is the domain of the Square System (obviously), and a casual investigation into the site's WHOIS profile reveals registrant info that points to an office in San Francisco, and a contact email address which reads... billing@paybysquirrel.com. Square, squirrel, square... are you getting it? So the cat, er, squirrel appears to be out of the bag. Now the question is whether or not Dorsey and co. can turn this fairly obscure piece of tech into the kind of firestorm which Twitter has become -- and who knows, maybe there'll even be a business model this time. [Thanks, Little Birdie]
Hitachi develops biometric payment system, uses it to sell junk food
Looks like Hitachi has made some serious headway on the biometric payment system we first heard about way back in the halcyon days of 2007. According to the Mainichi Daily News, the company is currently testing its Finger Vein Authentication System internally, with the device serving as a method of payment for vending machines and the like. Once it's proven that employees are able to get their Koala's March and Hi-Chew without incident, the plan is to up the ante, with high precision ID systems that combine finger vein and finger print authentication systems for military use.
