Upon browsing through my MIS class discussion forum, I came upon a post regarding the Apple iPhone and a credit card reader device known as the Square Up System. The company is called Square, and the main idea that got all of this started was: why can’t everyone accept credit cards? The blog post can be seen here, and it involves attaching a credit card reading device onto an iPhone to read credit cards and take transactions. Yes, it’s that simple! If you’re selling something on craigslist/ebay and making the transaction with your customer in real life, using the Square Up system will convenience both sides of the exchange.
This newfound technology may cause mixed feelings. Some skeptical people might think that this device may be easy to fraud, especially when there is no big bank company to back up the transactions. But isn’t that the same with almost all credit cards? And besides you gotta be a genius hacker to go through all the trouble to get a few extra bucks, that is, if you’re willing to run the risk of getting caught and being thrown into jail.
Square’s system is completely free, as opposed to a normal credit card merchant’s setup and monthly fees. The plug for the iPhone is also free! It is only the transactions that you have to pay 2.75% of the total, with a 15 cent charge, which I’d say is better than using your card on an actual credit card merchant.
Overall I think that this new Square System is very innovative, but perhaps it will take some time for everyone to accept that this technology is trustworthy in order for the world to use it.