Courtesy: Los Angeles Times
On Tuesday,Twitter Creator, Dorsey announced his new start-up, Square, which will let anyone with a cellphone or iPod become a merchant and accept credit card payments.
Square is a small plastic device that plugs into a gadget’s headphone jack. Buyers swipe their credit cards through the machine, which then transmits the payment data to an application running on a connected iPhone or iPod Touch. (Android and Blackberry apps are in development, and computer software will be available later.)
You don’t have to have the Square gadget or app to pay. You just need a credit card and an e-mail address to receive a receipt.
Beginning sometime early next year, Dorsey wants everyone to use Square.
Dorsey envisions the service replacing virtually every cash transaction. Let’s say a friend owes you $30 for dinner last week, but there’s no ATM in sight. Grab the Square device from your keychain, plug it into your phone and tell him to pay up.
The payment system is secure, Dorsey said. Transactional data is safely encrypted, and the credit card info is never stored on the device, only passed along, he said. Signatures are drawn with a finger on the touch screen.