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iZettle credit card reader for iPhone now available in Sweden in limited numbers
Back in April, I told you about the upcoming iZettle. The iZettle is made by a Swedish company and allows European merchants to accept credit card payments on an iPhone just like Square does in the US. However, the iZettle accepts the chip-and-pin credit cards that are standard in Europe and other parts of the world. It also plugs into the iPhone's dock connector instead of the iPhone's headphone jack like the Square reader does. I'm happy to announce that iZettle is now shipping the device in Sweden in very limited numbers. As a matter of fact there's only 2,000 of the devices to go around right now. If you want one, hurry up and download the free iZettle app (Swedish iTunes Store only) and register for an iZettle account through the app. The first 2,000 people to register will be sent a free iZettle credit card reader. If you don't get on in the first batch, you can still use the iZettle software to accept credit card payments, you'll just have to wait for the chip-and-pin reader as production ramps up. As for other countries in Europe, iZettle says that for now, it's Sweden only, but they expect to expand to more of the EU "soon."
NetSecure Kudos Payments announced for Canada, is the half-circle to Square
Canada may be moving to polymer-based currency, but mobile payment services like Square -- which cater to classic plastic -- haven't yet taken time to trek to the Great White North. NetSecure is looking to offer similar convenience to the region with its new Kudos Payments service, which just so happens to ship with a shockingly curvy swiping dongle. Similar to Square, it creates a secure 'point of sale' without a hard-wired transaction terminal, and charges a slightly higher 2.9-percent fee to users' accounts for each exchange. Kudos has iOS, Android, and Blackberry apps to tap into the functionality and, even a version for Mac and PC -- in other words, you and yours should be suitably covered. Any roving entrepreneurs who are interested in the service will be able to snag the $49.99 kit free of charge from the company's website for a "limited time," which may or may not expire before Google decides to open its own Wallet a few miles kilometers north.
iZettle credit card reader offers social networking, smart card compatibility
A lot of our European readers are disappointed that the iPhone add-on Square credit card reader won't work in their neck of the woods. Square might not, but Europeans will soon be able to accept credit card payments on their iPhones anyway thanks to the iZettle credit card reader. The device itself works like Square, except you plug it in through the Dock connector and not the headphone jack, and instead of swiping credit cards, you insert them into the iZettle so their chip and pin can be read. For those in the US who might not be familiar with them, chip and pin credit cards, or smart cards, offer increased security over American "swipe" credit cards. The iZettle also offers social network sharing so customers can post their purchases to Facebook or Twitter if they so choose. No word yet on the rate iZettle will charge per transaction, but the device itself will be free. iZettle will first launch in Sweden with other European countries to follow. You can see a video of iZettle in action on the next page.
Square encryption hinders Visa deal
Square is running into some problems with its new investment partner Visa. An executive at the mobile payments company confirmed it is re-working its system to encrypt credit card data on the fly. Square now uses a dongle that plugs into a headphone jack and an iOS application to process credit card transactions. While this system complies with industry regulations, it does not take the extra step to encrypt the credit card data. Now that Visa has joined Square as a strategic investor, the mobile payments company will be redesigning all its dongle to include this built-in encryption. Square did not comment on the financial impact of this change, but it could be costly. Square gives away the dongles for free and makes its money off a 2.75% per transaction fee. It is not clear how Square intends to absorb this extra cost. In light of the recent high-profile security breach of the Sony PlayStation network, Square is wise to add this layer of encryption and ease customers fear of having their transaction data inadvertently compromised.
Square gets the backing of credit card giant Visa
Mobile payment startup Square confirmed it received a strategic investment from Visa. Square produces a credit card reader that connects to the headphone jack of an iPhone, iPad or other mobile platform. The Square application on the device accepts the credit card information from the reader and processes the payment on the fly. It's an easy way for small businesses to accept credit card payments with minimal hardware requirements and a small 2.75 percent per transaction fee. [Past TUAW coverage of Square is here. –Ed.] The company is growing -- in the first quarter of 2011 alone, Square processed US$66 million in payments and predicts it will triple that figure to an astounding $198 million in Q2. Square also expanded its retail footprint and is now available online from Apple and in Apple retail stores in the US. This endorsement by a major credit card company boosts the startup's reputation and could help the company exceed its lofty goals. The amount of money invested by Visa was not disclosed, but Square confirmed Visa will become an advisor to the company. Visa and Square are excellent partners, as over two-thirds of Square's payments are made using Visa-backed credit cards. Though it enjoys a cozy relationship with Visa, the mobile payment service will still accept payments from MasterCard, American Express and Discover.
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]
Square's mobile payment card reader now available on Apple's online store, retail stores this week
Square is one of the coolest accessories made for the iPhone. It's a hardware/app combination that, when the hardware bit is plugged into the headphone jack on the iPhone, lets the user accept credit card payments. Simply swipe the card through the Square device while running the Square iOS app, and your customer's credit card is charged in moments. Beginning yesterday, the Square Credit Card Reader became available on Apple's online store, and according to TechCrunch, it will be appearing in Apple retail stores this week; although TechCrunch says it will be the "only payments solution featured in the store," VeriFone's PAYware Mobile is already on sale there. (Interestingly, Apple uses a different mobile payments solution with the iPod touch in its retail stores.) The Square Credit Card Reader comes in black or white and can be used with any fourth generation iPod touch, iPhone 4 or iPad. The device itself is US$9.95, but you get a $10 Square credit when you activate your free Square account. There is no monthly fee for users as Square takes 2.75 percent of every sale and deposits the rest to your checking account on a daily basis. The device will accept any US-issued Visa, MasterCard, American Express or Discover card. After a transaction is processed, you can simply email the receipt to your customer from the Square app. I think Square is an awesome example of how devices like the iPhone are empowering people and enabling them to do what would once have been impossible (or at least a lot more cumbersome). Now any individual, not just businesses, can accept credit card payments. This is a boon to people who do things like private consulting on the side for extra cash, as they now have an easy way to accept credit card payments. This even makes selling expensive items on Craigslist a lot easier. Now you don't have to rely on cash or being near a computer to complete a PayPal transaction when you sell off your old junk. And who knows, maybe the next time you buy a drink from your neighborhood lemonade stand, the 9-year-old behind the cardboard box will ask you "cash or credit?"
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.
Ohio Girl Scouts accepting mobile payments for cookies, your thin mint craving starts now
Short on cash but wishing you could stock up on Girl Scout cookies? Then you no longer have an excuse -- at least if you're in Northeast Ohio -- as the local Girl Scout group there has teamed up with Intuit to accept credit cards using the company's GoPayment app (and accompanying card reader) for iOS and Android. What's more, while the Ohio group is the first to sign up, Intuit is now also extending the same offer (which includes reduced transaction fees) to Girl Scout organizations across the US -- something tells us it won't have much trouble getting attracting interest.
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]
Organized ring charged with using fake credit cards at Apple Stores
Prosecutors in New York City have charged 27 people with organizing and running a ring of credit card fraud that was used to rip off Apple Stores around the United States. The thieves were able to buy over $1 million of Apple gear by obtaining stolen credit card numbers and manufacturing IDs and credit cards to go along with them, which were then used to simply purchase computers and devices straight from Apple. Those devices were then sold through a fence in Brooklyn, NY. NPR also says that three guns, $300,000 in cash and various bank accounts were seized during the investigation, which apparently went on so long that even when the original ringleader was arrested and placed in jail, he passed messages to his girlfriend about how to keep the ring going. The charges filed involve incidents from June 2008 up to last December, so like a lot of other Apple-related thefts we've seen, the items "purchased" were likely iPhones, iPads and MacBooks. [via MacObserver]
McDonald's to start accepting contactless Visa payments in all UK restaurants by this summer
The UK already has a big old investment in contactless technology with London's rather successful Oystercard travel scheme, but now the whole Kingdom can get a taste for airborne payments thanks to a new initiative from McDonald's and Visa. The two giants of commerce are uniting to bring NFC tech to all of the former's 1,200 fast food restaurants within the UK, allowing hungry Brits to pay for meals costing up to £15 by simply waving their credit card in front of the till Obi-wan-style. Of course, the real excitement of such large-scale NFC proliferation is in the potential to use those automated tills with your Nexus S (which has an NFC chip built right in) and other devices coming up this year that look set to feature the technology. So yeah, Visa had better be working hard on putting together some mobile apps. [Thanks, Steve]
Visa releases iPhone app with discounts, merchant directory
TechCrunch reports that payment processor Visa has released an iPhone app in the US* that gives shoppers access to some 50 merchants. Visa's new app comes with two services you can use, Offers and Locator. Offers: Receive merchant discounts and special offers directly on your iPhone. The offers are stored on your iPhone and can be redeemed at physical retail locations, online, or by telephone. You can select your preferences for the types of offers that are sent to your iPhone. Locator: Access maps and directions to nearby ATMs that accept Visa and retailers with special offers. Visa's app was developed in conjunction with the UK-based mobile banking firm Monetize. With financial firms showing growing interest in iOS apps, there's no reason an app couldn't eventually replace the plastic in your wallet. For now, Visa's iOS app isn't revolutionary. It's more of a cautionary "dip your toe into the app pool to see how the water feels" approach. *According to iTunes, it was released on November 24.
Square card reader: Now anyone in the US can accept credit cards
Headline updated to acknowledge that Square is a US-only service for now. Remember the Square card reader and payment service from our first hands-on video in January at Macworld Expo 2010? Square makes it possible for anyone, whether an individual or small business, to take payments via credit card. Shortly after Macworld Expo, I signed up for the service; I finally received my free credit card reader yesterday. The reader is a tiny square box that plugs into the audio port on iOS devices or other smartphones. Rather than using an expensive (usually $75 or more) "sled" reader like those used in Apple's retail stores, Square developed a reader that did not use the dock connector or need the blessing of Apple's "Made For iPhone" certification. These readers have no moving parts and are so inexpensive to manufacture that Square can give them away. Anyone can sign up for the service and get a free reader. If you want to be able to split a bar tab with friends and have them pay you via credit card, you can get a Square account and reader, and then simply swipe your friends cards to get paid. Square takes 2.75% of the transaction + 15¢ per swipe if you can get your drunk friends to provide their finger-written signatures, and 3.5% + 15¢ if they don't sign. Does that sound like a lot? To an individual, it might, but to small businesses who are used to hefty sign-up fees, monthly account minimums, merchant account fees, and higher percentages, Square is a hell of a deal. %Gallery-106879%
QuickPay announces ROAMpay credit card swiper for Android, BlackBerry, iOS
We've seen our fair share iPhone-based credit card payment systems, but we both know that those aren't the only handsets people do business with. ROAMpay from QuickPay Merchant Services is a device agnostic card swiper with apps available for iOS, Android, and BlackBerry. Actually, it seems to be a virtual cash register as well, letting you log cash transactions (and generate receipts for 'em) as well as offering real-time authorization for Visa, MasterCard, Discover, and American Express (as long as you have a QuickPay account, of course). Ready to get into business? Hit up the source link. Otherwise, we have a fantastic video (and some pretty swell PR) for you after the break.
Square payment system is coming back in full force by 'late summer'
Unsurprisingly, given the small company and big ambitions behind the project, the Square mobile payments system got off to a shaky start earlier this year. Hardware shortages were resolved relatively quickly, but setting up the proper fraud prevention infrastructure without transactional limits -- which, shockingly, were disfavored by merchants -- threatened to shelve the little credit card reader for a long while. Not to worry, though, as today the Wall Street Journal has word that Square is looking to be back in business, kicking ass and taking card numbers, before the summer is through. We're now at an advanced stage of said season, so it shouldn't be too long before those dongle-assisted microtransactions start flowing again.
Square delays reader distribution, says it's examining transaction limits
Two weeks back at WWDC, Square told us that the company was "catching up with demand" of its little plastic credit card reader for the iPhone, and that it would "be there really soon." But it looks like things won't quite "be there" as soon as they thought. They've decided to delay the mass roll-out of the devices, with Jack Dorsey telling users that the company "released parts of Square before they were fully baked." That coincides with what our readers were saying in the comments on the original interview -- that the reader devices were taking a long time to be shipped out to users. Dorsey also agreed with the other issue our commenters brought up (that the service's transaction limits, which Square originally put in place to counteract fraud, are too low), and said that those limits would be addressed soon. Dorsey doesn't say how "soon" that may be -- there's still no ETA on when the readers will go out, and Square is still working on how exactly it will change or update those transaction limits. Basically, there is no fix in sight for those frustrated by the company so far. So it looks like Square isn't quite where it wants to be yet. But then again, think about the problems it's having: it can't keep up with demand for free readers, and people want to transfer even more money through the service. Those are pretty good problems to have. Square is definitely taking its time while working out the kinks, but the fact that it just can't keep up with demand is far from a condemnation of their business model.
WWDC 2010: Square's first steps
Square has already made a big splash with its launch -- the company, founded by Jim McKelvey, Jack Dorsey (formerly of Twitter), and Tristan O'Tierney, has created a system for accepting credit card payments through the iPhone. After a lot of secrecy and hype, the app launched on the iPad a while back. While the Square Reader (a little doohickey you can plug in the headphone port of an iOS device to swipe credit cards in) is still hard to find, we got one directly from O'Tierney himself at WWDC last week. It wasn't free -- he charged us a buck for it (and for the privilege of seeing a demo), taken by swiping my card through the reader, having me sign on the touchscreen, and emailing me a receipt in a process that was quick and painless. Well, mostly painless -- you have to hand it to a company whose demo is dependent on you giving them a buck. But I guess O'Tierney paid me back with his time -- you'll find an interview after the link below in which he tells me the weirdest use of the reader he's seen, what their biggest fraud issue has been so far, and what the company plans to do next.
Coming soon: Paying for stuff on Visa by waving your iPhone
You've probably seen contactless payment terminals before. They're used in many stores, restaurants, and other locations, with either a smart credit card containing a secure memory card or some sort of fob being used to make the payment. You just wave it at the terminal, and you've paid your bill. Visa and DeviceFidelity are working on a way to let iPhone users make payments by waving their iPhones in front of contactless payment terminals. They'll be offering an iPhone case with an embedded secure memory card that hosts Visa's payment application, Visa payWave. Any place you find a Visa contactless payment terminal, there will also be a potential spot for iPhone users to pay for goods or services using their Visa credit card account. Security is still important: Visa notes that the mobile payment application can be protected with a password, and that users will have to treat the case as if it were a credit card, calling the bank if it gets lost or stolen. Market trials of this service are expected to start this summer. It's an interesting proposal, but we'll have to see what the case looks like. And of course it's only for Visa customers so far -- customers of other card companies will have to figure out their own solutions.
Square used for fundraiser payments at SxSW
Square is a very cool piece of hardware for the iPhone and other smartphones; when combined with the Square service, you can accept credit card payments right on your iPhone. TechCrunch reports that charity:water used Square at SxSW to collect donations, and other uses are already cropping up; flower carts and political fundraisers, for instance. If you haven't seen it in action, check out our in-person walkthrough from Macworld Expo, or the official YouTube video demonstration. The demo features Adam Lisagor (creator of Birdhouse for iPhone and part of my favorite podcast You Look Nice Today) and Jason Permenter, who walk through a very simple real-life scenario: what do you do if you want to sell something, like a couch, to someone who wants to pay with a credit card? Square not only makes it possible to do that, but it adds some cool features such as showing a picture of the buyer and seller on the iPhone to verify their identity. Square was born after Jim McKelvey couldn't sell a piece of art because he couldn't accept a credit card, a process that has traditionally been complicated and expensive. Part of Square's vision has included charitable giving, where a donation of 1¢ is made from every transaction to a cause of your choice. When I was growing up, using a credit card meant that the clerk had to reach under the counter, pull out a device where you would carefully line up the credit card, then put special receipt paper on it, including two carbon copies (remember carbon paper?), they would push the handle across the device and it would push the numbers on the card into the carbon paper, then they would hand it to you to sign, and then the clerk would take it back, pull out one of the carbon copies, and hand it to you. If you were standing in line behind someone paying with a credit card, you'd react much the same way people do these days if someone pays with a check. Nowadays those PIN-pad credit card readers are in all the major stores and at gas stations. Being able to accept credit cards is almost a necessity in today's world. Square could give individuals and small businesses the same opportunity, using a device that millions of people are already carrying around in their pockets. Check it out; even if you aren't a seller, you may want to sign up for Square to be registered as a buyer once it's out of private beta.
