Do You want a wallet-less revolution?

Have you ever used any kind of card to make a payment like a visa card? Obviously, you are not alone in this game. Cash is so outdated. Consumers are addicted to plastic. In 2012, American buyers used cash to pay for only 27 percent of day-to-day retail transactions. Now, the scenario is credit cards are also getting the talk to the 20th century. People are becoming smart now they are leaving their wallet at home and enjoy shopping.

Square is a very well known service that allows you to buy, sell and send money through the smartphone. Do you want a wallet-less revolution? Square is a financial product, merchant service aggregator and a mobile payment company focusing on digital payments and related solutions. Square not only offers just a software solution but also Hardware device that can be used to collect payments from the end user using their cards. Here you go on How does Square Work and How does Square Make Money?

How does Square Work?

You must be wondering: How does Square work? Let’s find out. According to Gartner- The research firm, more than 200 people worldwide made payments with their smartphones in 2012, and this number has been drastically increased in the last few years.

How does Square Work for Sellers?

With the Square, even small business can accept the payments with the credit or debit cards. With the use of Square vendors can turn their smartphones into a fully functioning cash register that accepts payments by credit or debit card and deposits the fund directly to their bank account.

Square offers various solutions of accepting payment in form of a Hardware attachment plugged in tablet or phone of the merchant and the customer can pay the merchant by swiping their card on a hardware device and signing on the connected phone or tablet. The hardware is nothing but a magnetic stripe reader which acts like a Credit card or debit card swiping machine.

How does Square Work for Buyers?

So, how does Square work for buyers? Square is much more than just a mobile cash register. It provides paying service with smartphones and emailing money. After downloading the Square Wallet, the person is asked to enter his/her credit card information and upload a photo of him/her self.

Using a smartphone’s built-in GPS, the Square Wallet app provides the buyer to browse or search for local stores that accept Square Wallet payments. When a buyer enters a store, he/she click on the store’s name in the Square Wallet app. That’s called "checking in" to the store. When it’s time to pay for the product or service, the buyer doesn’t even need to take out the phone. Just tell the salesperson his/her name and they will see the picture on their screen. With a click of the picture, the item or service is charged.

How does Square Make Money?

How Square makes money! Square offers numerous products and services and has multiple revenue sources. The biggest source of revenue is the commission of 2.75% on each transaction which it levies on merchants. The company has built multiple services and products which have been in lieu with its original business model and have given additional revenue to the company. It charges $29 for chip-based card terminal and $99 for Square stand. Other options are charged as per customization.

Source: How does Square Work?

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