Jack Dorsey: He’s too hip to be Square

Description: Twitter founder Jack Dorsey speaks about his latest project and his original: the site that started a revolution.

Source: CNN.com

Date: March 21, 2013

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http://cnn.com/video/?/video/tech/2013/03/21/exp-lead-dorsey-twitter-square-intv.cnn

Payments company Square is different from many consumer technology startups in that many businesses use the service all day for retail transactions in brick-and-mortar locations.

The transactions are critical to these businesses and have to work in many different situations in the “real world.” So Square’s multi-tiered testing program is a key part of its development process for its hardware and software.

The quickly growing payments company, headed by Twitter cofounder Jack Dorsey, last year announced a major deal with Starbucks and raised a major funding round valuing the company at $3.25 billion. Behind that growth is an in-depth testing program with small businesses to not only get feedback on new products but to keep Square connected with its merchants and learn about their most pressing business needs. While Square is ultimately used by consumers, Square’s essential customers are its merchants and the testing is an important part of its relationship with them.

Questions for discussion:

1. What is Square Technology and who are the target segments for this market ?

2. What is the business model for square technology and how does this technology make money (revenue model)?

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38 thoughts on “Jack Dorsey: He’s too hip to be Square

  1. Richelle Merrick

    Square technology is the newest way to pay for a purchase. It is a device that plugs into your iPhone, android, or ipad that allows you to pay for your purchase anywhere with your credit/debit card. It allows a customer to swipe their card on the square and immediately transfer money from one bank to the other. It is targeted towards businesses so that they have an inexpensive way to allow customers to use their credit card. Although it is targeted towards businesses it also profits the customer in many ways. However, it makes me a little nervous because there is so much fraud happening. This to me feels like it could easily allow comeone to copy my credit card and use it without physically possessing the card. If this continues to become more popular I am hoping that the security is raised. Being able to just swipe a phone to pay for something could be dangerous if the person who owns the phone loses it.
    Square is already worth $3.25 million dollars which is astounding. This is due to the deal it recently signed with Starbucks. Businesses are buying this technology and it making major profit.

    Reply
  2. Stacey

    Square technology is quite an innovation, founded by Jack Dorsey. It’s a neat little technology that can be plugged into any iphone or Android device that allows consumers to make credit card payments quickly and effortlessly. This technology makes a transaction so easy, without even taking your credit card or wallet out of your pocket. One of my biggest concerns with this technology would be the security issue. Is it secure to use this anywhere, without the use of pin numbers? It seems like they implemented chip cards for security reasons, and signatures are used less and less. The Square targets a large market with retail stores such as Starbucks as well as the little mom and pop stores. As well, so many people have smartphones that many people might find this method of payment more convenient than an actual wallet and many people would probably purchase them.

    Reply
  3. Jarett French

    Square technology first of all is a physical device that is plugged into an iPhone, iPad, or Android device that allows one to accept credit card payments. This device seems extremely useful especially fo5r small business owners. A friend of mine runs a small rockwork business and card payments are not a part of his payment options because he is not large enough to justify the cost of a portable transaction device, at least not until now. With the business model that the app is free and the device is free, it makes the start-up ability of using this method of receiving payment for a small business owner zero dollars, which is ingenious. The model is profitable for the “Square” because they take just over 2% of the transaction amount as a service fee. So I see small business as a large target audience for this app and device. The payment where you as the consumer just have the app in your phone and go to a shop and don’t even have to take out a card is targeting every consumer as far as I can see. We all talk about a day where we won’t have to carry physical wallets to pay for things, and this is just the first major step to where that will be a common reality.

    Reply
  4. Stuart Russell

    As a “small business owner” trying to grow a business, I often go to trade shows across British Columbia and Alberta. This device would make it far more easier for me to do transactions with customers that do not have cash on them, and who would be comfortable using this device in future. Much like PayPal, I assume that Square technology will also make money holding the money while it is placed in your bank account, via the interest they receive when lending it out if it is left in your account (basically several revenue streams for them). It will be interesting to see if this takes off both with older people and the younger generations, as we have been conditioned for some time to use our cards and online banking services.

    While the 2.75% fee will be a huge chunk of their revenue stream and likely cause some vendors and customers to avoid it, Square technology should focus on appealing to as large a market as possible, create ties with eBay and other companies that could use this technology, and strive to appeal to a broad consumer market. I could easily see this technology becoming mainstream in the very near future if properly advertised.

    Reply
  5. J. Pointer

    Square technology is a method of accepting payments via credit card. It plugs into a jack on an individuals smart phone. By simply plugging it in, it is able to transfer funds from one bank account to another without even pulling out your smart phone. I believe the main target segments for this phone are small business owners or entreprenuers. However I think more and more big name companies will take to this method of payment as it appears to be quick and convinient!
    My only problem would be the fragility of this chip. I am not to “graceful” when it comes to technology. I have a huge otter-box for a reason. Therefore if i had this little piece of hardware sticking out of my phone, it is bound to get broken.. only a matter of when. Therefore, if it is a costly venture, I feel the average consumer would have to pick and choose when to carry it about and use it. Do you use it when you’re just going for a coffee? Or do you use it only when you plan on going on a shopping spree of sorts.

    Reply
  6. Adam Christensen

    Square technology is a device that physically connects to an iPhone, iPad, or Android device and can receive payment via swiping the credit card or just being near a “square wallet” which is an app located on any of those devices. This technology is based around consumers being able to use their phone as their wallet as well. The target segments for this technology is the younger market or business savy people that use their phone for everything. Also, for the new age businesses that try to stay in the loop with technology.
    Square technology charges 2.75% for every transaction much like a credit card does, so although it can be a convenience, it is something that will cost the consumer. This is how they make their money.

    Reply
  7. Lauren Gallimore

    Square technology is the introduction of a new payment system where instead of having to hand over cash or get out a credit card, the payment is automatically made by a device attached to the customer’s smart phone. To make this process even easier, the smart phone does not even have to be taken out of the person’s pocket for the payment to go through. Although this technology seems extremely easy to use, it is most likely targeted towards tech-savvy 20-40 year olds. Not only must the customer already have an iPhone or Android smart phone, but they must be comfortable enough using it to allow money to be automatically transferred out of their bank account through their phone. In addition to the technology itself, the choice of companies that Square has chosen to partner with also seem to be where this segment of the population would shop at frequently. A partnership with Starbucks is the perfect place to start to increase awareness about this new technology to people who are most likely to buy it.

    Square’s revenue is variable, in the sense that it is dependent on the number of transactions made. Although the Square system is supplied for free, it makes 2.75% on every transaction is facilitates. Although the revenue made off one cup of coffee is very little, if this technology takes off and becomes a popular form of payment around the world, the revenue generated would be enormous. Merchants could be inclined to use this form of payment since it makes the whole payment process almost instant, allowing the company to serve more customers, more quickly.

    Reply
  8. Litchi Peng

    Square is a device that set in any smart phone such as iphone, ipad any android to make payment easier. It can transfer the money from one account to another account. For companies, they have the consumer’s information so that they can make sure it is the right person and charge him or her correctly. For customers, they do not have to go to the store. It is convenient. However, they need to enter all information of their personal credit and debit cards so that square technology can transfer money from the buyer to the vendor. Even though the square technology is very convenient, I am kind of nervous to use this technology to make payment. If I lose my iPhone, at the same time I lose my private information as well. It had better not save all your credit and debit card information on your phones. Square Technology is a very generous installment for business. The square charges 2.75% per transaction, which is way cheaper than most online payment. People can download the free apps, and there is no shipping fees and any other fees.

    Reply
  9. Alicia Dyck

    Square technology is a new way of paying for products without having to use a wallet, cash, or card. This technology is directed young people with mobile phones. However, considering that I know a number of older people who are always trying utilize new technology, it would not surprise me if the market is a lot wider than originally thought. I am not sure if I would want to use this technology for myself, simply because it could be very insecure. When paying for something, your name pops up on a screen and all you have to do is say ‘charge it to me’ and the person behind the till will not know if you are who you say you are and you have no card that you need. The truth may be that the person in line behind you has that technology and you are simply taking advantage of him/her. However, I suppose that it is no more unsafe than using a credit card, which can be easily stolen. It may be a good idea to make people put in a pin in order to pay the same way that many credit cards now require that you put in a pin to verify that it is your card. I think this idea is incredibly brilliant, but will definitely need some kinks worked out in the long run.

    Reply
  10. Yu Chao

    Payments company Square is different from many consumer technology startups in that many businesses use the service all day for retail transactions in brick-and-mortar locations.and Square technology is an electronic payment technology that uses a reader and smartphones to complete transactions. The target segments include both large retail brick and mortar chains such as Starbucks, as well as small retailers and consultants. also it has its modle , firstly , it did not have the shipping charge, and no monthly fees

    Reply
  11. Matthew Mitten

    Square technology is the next step in absolute laziness! Huge fan of the concept! It takes away the necessity to even stick your hand in your wallet if you go into a location with the technology already in place. It can be plugged into an ipone or ipad and work as a credit card ready or even a scanner if youre connected to it with your iphone in locations such as that grumpy coffee place in New York. It adds to security because the face automatically pops up on the screen, where as people never ask to see photo id when accepting a credit card.

    Square technology makes it revenue through percentage pricing much like credit card companies. They take 2.75% for every transaction which may seem very marginal at the moment but with the ease of using this technology I can see it spreading around the world like visa and mastercard have done.

    Reply
  12. La Porta Thibaut

    1. What is Square Technology and who are the target segments for this market ?
    Square is a device used to make payment easier, it is a small device that consumers plug into their iphone, android or ipad, and will then transfer the money from one account to another without the need of taking the phone out. The saler will have the consumer’s information and picture on their device when close to each other, to make sure the right person is being charged. The target segment are small businesses as well as big companies like Starbucks and obviously smartphone owners as this concept would virtually be impossible without them.

    2. What is the business model for square technology and how does this technology make money (revenue model)?
    Square charges 2.75% per transaction, which is much cheaper then most online payment service. Finally, Square give free shipping, app and card reader at the begining. So this is an advantage to start, and even with low charges, it is a very good way to help and make profits at the same time.

    Reply
  13. Kelsey Allan

    Square technology is a device that is put into your phone that allows you to pay for your personal items without your credit card. Just a sign of your name or a confirmation of your name to the cashier. Will the technology ever stop. The first thing that comes to my mind with this though is the security issue. We already struggle with security just on banking sites, as in this video, Jack didn’t even have to sign anything, i think this could be an ultimately large issue with this processor. Also the other issue that is present within this model is that your phone is carrying absolutely all of your personal information. Having your phone stolen could ultimately allow the thief to have access to all your personal information with no problems. I definitely think that i would not be using this new square technology because of the security issues i see it facing now and in the future.
    I think that the main consumers of this product are those in the consumer and business industry. This makes transactions significantly easier, because the money is being directly transferred to the company’s account as the consumer is purchasing. However, the main segments of the market are regular brick-and-mortar stores as well as small companies.

    Reply
  14. Lanre Paulissen

    Would there ever be a limit to technology? I doubt it. Years back it was cash based society, then we moved to cashless, carrying our cash on small plastic cards. Presently, cash is now being carried on our mobile devices.
    Square Technology is an electronic payment technology that allows a user to have the some hardware attached to his or her mobile device and enable the user complete payment transactions at a point-of-sale terminal. The technology is novel and credited to Jack Dorsey, Twitter co-founder. Payment transactions are critical to businesses and in an age where we have grown to be increasingly inpatient, having a more convenient and faster way to check out is more than welcome. The target segments for this technology are small businesses that need to innovate in order to have a competitive advantage.
    Square makes money by charging it’s merchants a transaction fee. Square also competes on a cost basis by charging less than other payment companies like PayPal. Also, Square provided the component to its client base for free. From a cost perspective, clients would most likely appreciate this especially if the platform is reliable. This removes the cost of rolling out and deploying new hardware which could cost a lot for most business especially small business which Square targets. While the good side for Square is that it has its device out in the market generating a cut from every transaction processed.

    Reply
  15. Chance Olsen

    What is square Technology and who are the target segments for this market?
    This new technology that is known as square technology is an electronic device that can be inserted into you iphone, ipad, or android device so that you can quickly accept payments. This device allows payments to be made wherever an internet connection can be established. There are two methods that were discussed in the video on how this payment works. One method is you can take a credit card and scan it and then payment occurs as a regular credit card purchase. The other method consists of you walking up to the till and because your phone has all of the necessary information, you can just say your name, and then information comes up on the screen and all you have to do is sign it with your finger. The target market is the newer tech savvy generation. They always have a phone on them and don’t like to carry cash around. Currently Starbucks accepts square technology and some local stores in New York.

    Reply
  16. Leisha Hansen

    Square technology is the technology that will allow a person to pay for purchases via their phone. The phone needs to be on their person and within range of the cash register and the owner needs to sign to verify the purchase, but the phone contains all credit and debit card information needed to transfer money from the buyer to the vendor. The technology is contained in a square that is connected to the phone and the phone can also be scanned to pass payment. This is being sold to vendors who have a client base that wants quick service and quick payment, such as Starbucks. The people who will buy into the technology are those who frequent the vendors who accept this form of payment.
    This technology makes me very nervous. It requires that your phone contain all your personal information that could be requested at the time of purchase. If you have it, there needs to be some check and protection so that people can’t fraudulently acquire the vendor terminal and just walk past you and swipe your credit card and use it to transfer all your money to their account. There are so many things that I would think could go wrong in using it.

    Reply
  17. Josh Bodnaruk

    Square technology is the conversion of carrying any sort of debit or credit card into a piece integrated with your phone. The technology would already add to a massive list of uses a smart phone has, and since so many people keep absolutely everything on their devices, this genuinely makes good sense. Lowering the list of things you need to have on you reduces the risk of losing the items or theft. Unfortunately, there is also inherent risk in this. Due to the fact that if you then lose the phone you almost lose full functionality within the system.
    Square currently provides the system and conponents free of charge, and then charges a 2.75% fee on each transaction,. The providing of equipment is a major advantage, and this would attract a lot of potential customers for this system.

    Reply
  18. Chyan Tibert

    Square technology is no longer carry around money, a debit card or even a credit card. The idea that your phone as everything you need in its convenient little package. Not only is you mobile device just a phone but Steve Jobs revolutionized the world by changing it into a mini computer. Your mobile phone can play and store music, email, use social media, google and has the internet at you finger tips. Now Jack Dorsey has added yet another item your mobile phone can do, make electronic payments for purchases. So far the target customer is only iphone and android users but I am confident that this technology will advance to other mobile devices as the trend picks up. More and more stores are integrating the square technology into their payment systems. A quality that impresses me about the square technology is that your picture comes up on the register and the sales representative has to verify the person. I think that this could help reduce the use of fraudulent cards but could change the way fraud occurs. You are able to take a payment with only being feet away and the mobile device which can remain in the customer’s pocket.

    Reply
  19. Megan Jackson

    Square technology is a payment system device created by Jack Dorsey that can be connected to the dock of a smart phone such as the iPhone or even to tablets like the iPad. These payment systems allow you to collect your credit card and make a payment wherever you are. Square also accepts in the form of a square wallet. This uses your phone to pay. So it is essentially an e-wallet, which uses technology as your payment form.
    Technology has evolved so much that it is allowing us to do day-to-day activities in a much easier and quicker manner than ever before. Square technology is quite enthralling, however, I’m not quite yet convinced as I feel like it could allow for fraud to be committed a lot easier. Many people may be reluctant to use this type of payment form as it does not seem as secure as using a physical credit card, with a chip and pin. Maybe people are not quite ready for this form of payment. The idea is well thought out, it just may need to be made more secure for it to be successful everywhere. Maybe incorporate a personal security measure like we have we credit cards and debit cards.

    Reply
  20. TJ Winn

    Square Technology is a small square plastic device which is capable of providing a payment service. Square plugs into your mobile device (iPad, iPhone, Android phone) and enables the user to collect payment from another party simply by swiping their credit card through the Square device and inputting the amount of payment to be collected. In order for Square to work on a mobile device it needs to also have two apps, namely Square Register and Square Wallet. This totally mobile payment collection could revolutionize shopping experiences in the future, especially in places that are difficult to provide the traditional cash register facilities; such as adventure tourism locations, concerts, and even taxis.

    I would assume that Square Tech. is mainly targeting a younger market that 1 have smart phones and 2 are ‘tech savvy’ enough to trust and know how to use the product.

    Square currently provides the card reader and apps to its customers free of charge. They make their money by simply charging a 2.75% fee on every transaction. Many shop owners and business men may possibly think of this just being a small convenience fee of having the latest payment method and the ease of quick painless payment.

    Reply
  21. Callie Matz

    Square technology is an electronic payment system that attaches to smartphones, including Android and Apple, developed by the creator of Twitter Jack Dorsey. It is called square technology because it is basically just a square box that attaches to a phone to allow for the acceptance of payment between two parties whether it is a business such as Starbucks or a friend. The target market is tech savvy consumers who make everyday purchases. It would also target consumers who are not concerned about security and who have a smartphone.

    Square makes money by charging a fee for facilitating transactions. In order to increase venue they will need to increase the volume of transactions. Their margin is set and costs are relatively stable so if they can increase the number of vendors who offer the service and increase their customer base they will be able to increase volume and profits. I do not think that I would use this payment system in the near future. When I am paying people back if it is more than a couple dollars I will use my internet banking to make a payment on their credit card. I feel more secure using my bank and taking advantage of their security systems.

    Reply
  22. Warren Murley

    It is a small simple device that plugs into an iPhone, android device, or iPad that allows you to accept credit cards where ever you are. Right now the technology is used in Starbucks and some neighbourhood cafes and the target “market” would be consumers who make everyday purchases. Someone with an app on their smartphone just has to be close to the vendor with Square, and they put the purchase under the person’s “Account” that appears on the vendor’s screen and then the customer signs and the money is transferred the morning of the next business day.
    The business model is based on several clients paying a small transaction fee for each transaction made(low margin high sales). So as the technology becomes popular there is more opportunity to make money

    Reply
  23. Jarrett Potvin

    Square technology is a new medium to facilitate financial transactions. The target segments are those customers and vendors who tend to do small, repetitive transactions in order to speed up service. The customers that Dorsey is looking to get is large retail like Starbucks but as well small businesses who cannot afford to have the big expensive credit card readers in their stores. As for the customer it will allow for an order to be placed from your phone so that when you arrive what you ordered is ready to pick up. It will also help speed up transactions since your phone will transmit the information to the device you will pay on as soon as you order so no more ringing up at the tills.
    The business model will to be in every major chain and small business that needs to have fast service. The Square will generate revenue off of a commission based systems in either a flat fee per transaction or a percentage of sales that the machine will run. This is not unlike how credit cards make money from vendors and is in truth a very effective system to generate high revenue with little or no effort, other than development, from Dorsey.

    Reply
  24. Mike Jensen

    1. What is Square Technology and who are the target segments for this market?
    Square Technology is an electronic payment device project created by Twitter cofounder, Jack Dorsey, which is compatible with iPads, IPhones, and Android powered mobile devices. The target segments of this particular market are small business owners or merchants. Square technology is already used with the popular coffee phenomenon, Starbucks, and is slowly, but surely becoming established with other small businesses. The Square technology is quite fascinating, considering that it can perform a transaction with the user’s personal data from their electronic device to the merchants business in a short period of time.
    2. What is the business model for square technology and how does this technology make money (revenue model)?
    Square Technology is a very generous installment for businesses, and at the same time, very profitable for the Square Technology Company. First off, there are no annual or monthly fees, and no shipping charges. In turn, Square charges 2.75% per transaction, in order to generate a consistent revenue stream. Lastly, with regards to customers who use Square Technology, the interest charge is about0.75% less than regular credit card bills.

    Reply
  25. Brad Zander

    This new technology that has been introduced by Jack Dorsey, known as the Square, has various pros and cons to its use. First of all, this technology scares me. As shown in the video, all Jack had to do was walk up to the desk at the coffee shop and at the click of a button the shop would get their money. What’s to stop the shop owner from just doing those types of transactions. This brings much issues of moral hazard to businesses that use this new technology. Secondly, there is this idea that you can swipe your credit card and then sign your name and your money will be transferred at the beginning of the next business day into the account of the vendor. This is contrary to where the current market is going. The current market is moving to the chip debit and credit cards. The whole concept behind this change is that people are tired of going through the hassle of signing their name. They would rather remember and put in a 4 digit code instead of signing their name. Therefore this technology is not effective with current market. However, the ability to process transactions using a phone or iPad is very intriguing to me and is something that would be very handy in door to door sales, pizza delivery, and various small businesses.

    Reply
  26. Matthew Chipman

    Square technology is an electronic payment device that connects to iPhones, iPads, and Android devices to accept payments promptly and easily from customers. The target market includes major retail brick and mortar chains such as Starbucks, as well as small retailers and service providers. This is a very simple and useful product, which almost everyone would be able to use to improve their shopping and buying experiences since the number of users of smartphones, continues to skyrocket.

    Square tech company charges 2.75% per transaction which generates thousands of dollars in revenue. Compared to the traditional credit card that charges 3.50% per transaction.Thus it is more efficient and cost saving for people. It will be easier for people to pay for products and services now which seems to fit with the current trend today. I think that this will impact stores that experiance extremley high volumes of customers at peak times as it will allow for the financial transactions to be handled alot more effortlessly and quickley so no more time or effort is required than is necessisary.

    Reply
  27. Alphine Bindiridza

    Square technology is a very simple and little device that is plugged in an iPhone, iPad or an Android device and allows one to make payments using their gadgets. This technology works without one swiping their card. The target segments are all the people with smart phones who can be allegible to use this technology and all the well developed retail stores. This would encourage customers to start using the square technology because it seems like it saves so much time other than swiping your card, entering your PIN and waiting for the machine to approve the transaction. For this technology a certain small amount is paid towards each transactions and that is the means of profit for this company. The company also offers apps and the device is shipped to the customer for free hence customers are attracted to buy the device.

    Reply
  28. Mariam akinola

    Square technology is a little electronic payment device which the name suggest already is square. It it a device that is plugged into an iPhone, iPad or any android device that accepts credit card for payments. This device is now being accepted in Starbucks for purchases. The process is simple- attach it to your device, swipe your card and put in your signature. The money transfers to the store the following business day. It’s that simple! The market from this square device will be the proactive individuals who have positive thoughts on technology.these consumers will be willing to use the device because it has some advantages like simplicity and less time consuming. As time goes on, I think a lot of people will move towards the use of this device.
    Althugh setting up this deviceis free,this technology product charges 2.75% per transaction fee which generates thousands of dollars in revenue. Compared to the traditional credit card that charges 3.50% + 15 cents on transaction, it is more efficient and cost saving for people. It will be easier for people to pay for products and services now and in the future to come.

    Reply
  29. Jonny Kostiuk

    Square technology is a device that you plug into your smart phone or table that always people to make credit card transactions with their device. It was created my Jack Dorsey, the founder of Twitter and a billionaire. It is probably the easiest way to make purchases on the spot form anyone and from anywhere. The target market is anyone who wants to make their product easier for purchase for their customers and who enjoys and use technology. It is currently in the innovator stage of the product life cycle and I assume it will grow a lot in the near future.
    They make their money by charging a 2.75% charges, this can and has added up to a lot of money. They offer everything for free such as the application download. They offer slightly lower money and are trying go for the small margins with very large volumes.

    Reply
  30. Jacqueline Wegener

    Square technology is an electronic payment device that can be connected to iPhones, iPads, and Android devices to quickly accept payments from customers. The target market for the Square Technology is large chains such as Starbucks, independently owned businesses, retailers and consultants. This technology accepts credit card payments from mobile devices as well. This technology creates an ease of making payments for the tech savvy consumer. They can either have their phone in a close proximity to the machine and it will identify the account information and transfer the necessary amount of the customer can pull out their credit card and give it to the merchant who can scan it to their iphone, ipad or Android using the Square. I feel that some people may be hesitant to make large payments on their credit card with this type of technology and may prefer to use the chip/pin technology for the sake of security reasons.

    Square Technology makes revenue through charging a small transaction fee to the merchants (2.75%) that generated over $250,000 in annual credit sales. If a merchant that is utilizing this technology comes in under the $250,000 in annual credit card sales then they are charged a flat rate of $275/month. From the sales that the merchant makes using this technology, the money that is generated from the sale is available to the merchant the morning of the next business day.

    Reply
  31. Akina Morimoto

    Square technology is a device created by Jack Dorsey, which can be plugged into an iPhone, Android, or iPad. This technology allows consumers to make credit card payments quickly and conveniently through their devices. The main target consumers would be those who are tech savvy, or those that spend a significant amount of time in stores that use this technology, such as Starbucks and neighbourhood local stores.
    It does not even require the consumer to take out their mobile device or iPad to confirm the payment, where the payment is transferred the next business morning. Scanning the mobile device or iPad is another method of Square as well.
    Not only does Square offers no monthly fees and free shipping, but they also charge 2.75% per transaction in order to make profit. This is also beneficial to consumers, because in comparison to monthly credit card bills, Square charges at least 0.75% less.
    Square appears to be an innovative and efficient way to make payments. However, I am concerned about the security issues that may result due to this device. There is no question that this device could become a part of electronic payment methods, but there must be further investigation done on the security features of this device before consumers will fully commit to this idea.

    Reply
  32. swatigade

    1.What is Square Technology and who are the target segments for this market?
    Square technology is a credit card square holder that can be attached to iPhone, android phones or an iPad. It lets you swipe your credit on to the square that is attached to the phone and the transaction is complete. Their target market is the tech savvy consumer who likes the convenience of products. Currently Starbucks accepts this technology now and some neighborhood local stores in New York. Testing is currently being done with small local stores.

    2. What is the business model for square technology and how does this technology make money (revenue model)?
    Square technology charges 2.75% per swipe for Visa and MasterCard compared to 3.5%+15cents per transaction for manually entered cards. Square offers free app, free card reader and free shipping. It has no merchant account, monthly fees or set-up costs.

    Reply
  33. Landon

    1. What is Square Technology and who are the target segments for this market ?
    Square Technology is a device that is plugged into an Android or iOS system operated phone. The two biggest target segments are retailers, such as Starbucks, and tech savvy consumers. I do not believe that this would be super convenient to consumers. What happened to the “tap” your credit card? I thought that was fairly convenient. And I still believe the chip and pin type transaction is still the most effective, efficient and most secure.

    2. What is the business model for square technology and how does this technology make money (revenue model)?
    Square technology charges a percentage of 2.75% per transaction.
    The big perks to their business model are the free app, no monthly fees, and free shipping of the device. The businesses that use this technology, have the money deposited into their account the morning of the next business day.

    Reply
  34. Carla Hornecker

    Square technology is an electronic payment method that involves a device plugged into an iPhone or Android smartphone. This technology allows you to make credit card payments through your smartphone or iPad, and only requires a certain proximity to a reader in stores and retail locations. This makes payment transactions very efficient and smooth, with very little effort involved.

    The main target segments for this market are the stores and retail locations, like Starbucks, which can utilize this technology to attract consumers and increase the efficiency of their payment transactions. In addition, this technology targets anyone with a mobile device that is compatible with it. This is a very useful product and technology, which almost everyone would be able to use to improve their shopping and buying experiences.

    Square technology makes money by charging fees to the merchants who employ their technology at their locations. The percentage is relatively low, and most merchants would most likely be willing to take advantage of the technology anyway, to attract consumers and increase their efficiency. The merchant receives their payment from a transaction the next business day. Square technology will therefore be relying on a large number of transactions taking place in order to make a significant profit. However, if this technology catches on around the world, there will definitely be an opportunity to make a lot of money.

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  35. Sheri Durina

    Square Technology is a new and innovative payment method founded by Jack Dorsey, who is also the founder of Twitter. Square, also called Square Up, allows for credit card payments through your mobile device – it works with iOS and Android devices. This technology can even work without even removing your credit card or your mobile device from your pocket.

    Square’s essential customers are the merchants. Obviously if the merchants do not offer this technology, then the customers would not have the ability to utilize it. Testing will be an on-going and very important aspect of the Square Technology. Currently, Square has signed a major deal with Starbucks and I expect many other merchant contracts will soon follow. The secondary market would be credit card users/consumers.

    It seems that consumers may want some additional assurances regarding security before they be sold on this new technology. In researching some recent online reviews about this new technology, it was suggested that more testing is needed in regards to security features.

    Square charges 2.75% per swipe for Visa and MasterCard and there is a cost of 3.5% plus 15 cents per transaction for manually-entered cards. Multiple items are offered at not cost: free app downloadable from the App Store or the Google Play Store, free card reader, free shipping, no merchant account, no monthly fees, and no set-up costs. Merchants will usually receive funds in their bank account the next business day and there is no limit to amount of payments that can be taken.

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  36. Devin Phalen

    1. What is Square Technology and who are the target segments for this market?
    Square technology is an electronic payment technology that uses a reader and smartphones to complete transactions. The target segments include both large retail brick and mortar chains such as Starbucks, as well as small retailers and consultants.

    2. What is the business model for square technology and how does this technology make money (revenue model)?
    Square makes its money through a 2.75% transaction fee for merchants with over $250,000 in annual credit card sales. For those merchants under this amount, there is a flat $275 per month all inclusive rate. If a merchant goes over the monthly amount ($20833), the plan reverts back to the 2.75% fee. The money is available to the merchant the next business day. The merchant side is growing quickly and the customer side is starting to increase as well. I don’t really see a huge convenience advantage with this for the customer. You still need to carry your drivers license, health card, etc. around with you in your wallet, so its unlikely that you’d be without your credit card. I also don’t see how pulling a card out, sticking it in a machine, and punching in your PIN is a big inconvenience. It will be the merchants, however, that will dictate the extent to which this catches on.

    Reply
  37. KJ

    1. What is Square Technology and who are the target segments for this market ?
    a. Entrepreneurs and small business owners such as consultants and which operate from a retail environment make up the main markets for these apps which are free to download on the markets. Considering business is all about creating and optimizing relationships, the technology helps optimize and bridge the gap between the business and the consumer. Practically everyone has a smart phone, it was only nature before someone found a way to commercialize upon it even further from where it already has become. This device capitalizes upon the consumers accessibility to pay for their product or service.

    2. What is the business model for square technology and how does this technology make money (revenue model)?

    b. From a poke around their website and reading up on the square technology product seems they make money via transaction fees (2.75%). This is about 40% cheaper than paypal or other on-line merchanting services but also higher than conventional credit card processors. They seem to be free to set up and even will send you a device to get started. Recently as of late 2012 they started to roll out flat-rate pricing.

    Reply

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