Roger Fingas
Square on Monday officially launched a new mobile card reader compatible with Apple Pay, something that could potentially boost the latter platform's support outside of major retail chains.
The Contactless and Chip Reader supports not just Apple Pay but Android Pay, Samsung Pay, and chip-based credit and debit cards. It works with Square's existing point-of-sale app, and moreover includes the company's previous magstripe card reader for backwards compatibility.
The CCR costs just $49, though each transaction carries a 2.75 percent fee.
Apple and Square first teased the new reader at the former's Worldwide Developer Conference in June, but didn't offer a precise release date at the time.
One of Apple's Pay's biggest obstacles has been small business support. Although Apple has made attempts to push into that market, many independents can't afford NFC-equipped terminals, and indeed many national U.S. chains have yet to finish upgrading.
PayAnywhere recently launched an Apple Pay-ready mobile reader of its own, but Square is one of the most popular payment options for small businesses, particularly among trailer and kiosk owners.
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24 Comments
2.75% ? Ouch...
This is great. For small businesses that cannot afford a credit department the 2.75% is not all bad. Much more reasonable than having the overhead in house. This enables them to be relevant in the payments game. I would like to see an in between solution for mid sized businesses. We currently pay 1.12% and will not pay the premium for this type of service. Would I pay 0.50% more? Yes.
Man, I think I could do it for a whole lot less than 2.75%. That is robbery.
2.75% ? Ouch...
Double Ouch!
Square is (IMHO) fighting a losing battle. As I see it, merchants are going to get NFC terminals from their Card processor. Many of these will include the tech needed for make Apple Pay and others work OOTB.
I used Apple Pay at my local brewery the other day. They are the sort of SME's that Square are targetting. With many, the boat that Square is after has already sailed.
[edit to add]
Paypal has been advertising a similar device here in the UK in recent months.
This leads me to be more certain that Square will not be a success if they decide to launch on this side of the Atlantic. Paypal is a known brand. Square is most certainly not.
This is great. For small businesses that cannot afford a credit department the 2.75% is not all bad. Much more reasonable than having the overhead in house. This enables them to be relevant in the payments game. I would like to see an in between solution for mid sized businesses. We currently pay 1.12% and will not pay the premium for this type of service. Would I pay 0.50% more? Yes.
How do you get the low rate of 1.12%? I thought most small businesses paid close to 3% processing fees. I see Square charges 2.65% for processing and now 2.75% for contactless. So for their existing customers it's only gone up by 0.1%? Seems fair.
Or is this 2.75% ON TOP of existing fees (which would seem ridiculous)?
EDITED: On another note, they can sell this reader for $49? If their fees are competitive with other processors, how can anyone claim price is the barrier to merchants upgrading to NFC?