Square Waives Per Transaction Fees, Aims Future Growth

February 23rd, 2011 at 9:03 am

There are now more and more new ways and uses for mobile phones that people have thought about. One of the unique but useful ones is accepting credit card payments. There are now mobile payment companies like Square who are establishing their own spot in the industry, creating secure and easy mobile payment systems that consumers and businesses can now use conveniently.

With Square a relative startup in the mobile payments industry, it does try to make itself more competitive and significant. The company is aiming for growth in a market segment that is also expected to enjoy some exponential growth in about 3 years or so. It is trying to make its mark by making their service more attractive. One of their recent actions is waiving the usual flat fee for each transaction made using their system of payment.

Along with trying to make the mobile payment experience even simpler, the company has moved to do away with charging a flat fee of 15 cents per transaction. Instead, Square will move to charge a flat 2.75 percent fee of all transactions, regardless of size.

With Square getting some fresh infusion of capital worth $27.5 million, it is moving to further improve on its services and gearing towards growth in the coming years as mobile e-commerce grows even further.

With its waived transaction fee, Square will surely be attracting many small businesses. The 2.75 percent transaction fee would considerably be more affordable for them. But this also works for Square. Instead of a flat per transaction fee, their revenue may increase as more and more expected high value purchases are made through their mobile payment system. This, in itself may help spur their growth further.


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