Square: Payments Anywhere

Max Kramermckramer@unc.edu

Commerce Transactions between consumers and

businesses• Cash• Check• Credit

Transactions between individuals• Cash• Check• Credit

Why not credit too?

Card Reading Systems Expensive to buy

• Difficult for new businesses Hard to program Costs

• Per use• Monthly• Hardware

Most require wires• Not portable

Square Twitter co-founder Jack Dorsey Phones = computers

• Use power of everyday device to handle credit transactions

Major obstacles• Fraud

Keep cost to user low by keeping fraud low• Input

Type in credit card number Read magnetic strip from card

• Mobile platforms

Magnetic strip reading Challenge

• How to get information from credit card to the phone?

Solution1. Create hardware to read strip2. Transfer data to the device How to transfer?

The Square Device Need to make independent of phone

• Android phones use USB• iPhones use the proprietary iPod connector

The Square Device Solution

• Use the audio jack• Standard on virtually every phone

Steps

Read magnetic

strip

Encode as audio

streamSend to phone

Listen to stream

Decode audio

information

Features Store

• Common products• Images of goods

Track sales Tips & tax Location Receipts Identity

• Square users

Pricing Square (hardware)

is free• Activate account and

company ships hardware for free

Cost per use• Swipe: 2.75% + $0.15• Type: 3.5% + $0.15

Possible uses Any small business Artist Craigslist seller Tennis lesson pro Tutor Babysitter Fundraising Haircut Doctor who makes house calls

Future uses for the hardware

User Identification• Security• Companies

Loyalty cards Drivers license Extend

• Android API

Last words Named to top 50

inventions of 2010 by Time magazine

VeriFone released competitor• Sleeve for iPhone• Not audio

References CNET

• Twitter co-founder's 'Square' comes into focus Pogue’s Posts

• State of the Art - A Simple Swipe on the iPhone, and You’re Paid

Tech Crunch• Square Now Processing Millions Of Dollars In

Mobile Transactions Every Week Square on github

• Repositories• Android API