Tuesday, December 6, 2011
Square Mobile Merchant Processing Solution Works for Small Businesses Like Restaurants
In 2011, Square, which accrues income by collecting transaction fees, has aided businesses credit card processing for two billion worth of luxury items, such as precious gems, and for special services, such as dance lessons and goodies at specialty coffee shops. The average purchase put through Square is seventy-five dollars.
However, Square faces a formidable challenge and major obstacles from competitors toward becoming a solution for big retailers and corporations. "While Square is new, it's just facilitating a 50-year-old payment mechanism - magnetic stripe cards," said Nick Holland, an Analyst at Market Researcher at Yankee Group.
Mobile credit card transactions are expected to almost double this in 2011, to almost ninety billion from forty-none billion in 2010, according to market researcher Gartner. Competitors are analyzing this trend. Google is the latest company to jump into the fracas, joining PayPal, Intuit and many of others. "It is a gold rush," a source said.