Square Now Processing US$2 Billion Payments Yearly

October 12th, 2011 at 2:05 pm

It is now very clear that mobile payments have a very promising future. As more and more people finally able to put their trust in mobile payment systems, this once novel idea would be enjoying incredible growth in the coming years, even in just a matter of months. A case in point- mobile payments company Square has been reported to process around US$2 billion transactions a year.

Square is a mobile payments system that allows merchants to accept payments using their iPhone, iPad or Android devices when connected to a handy credit card swiping device. ¬†According to Square, statistics have shown that it has also activated 800,000 merchants using its mobile payments system, up from 500,000 since May this year. This impressive growth may seem great already, but the mobile payment system still as more room for improvement. Perspective wise, Square’s merchant reach is just shy of 10 percent compared to that of the conventional credit card transactions. That means that Square has to attract even more merchants into its fold. And that is what it is actually doing in the coming months.

Square has decided to drop its user limits with the use of their mobile payments system. Up until the announcement, Square merchants can only process up to $1,000 in payments per week. If merchants go over that limit, everything above it gets put on hold for a certain period of time, ranging from a few hours to a month. And now, Square is now dropping those limits to allow merchants to process more payments. It was only a few months ago that Square has also done away with charges per transaction for its mobile payment service.

With these new announcements, more and more merchants would surely now be getting interested in using Square. It may eventually do away with the need for merchants to set up a merchant account before they can process the payments. And if Square can further enhance and improve on its mobile payments system, it would not be long before the world may consider it as the benchmark for success in the mobile payments industry.


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