What excites me most about the web and mobile is the ability it gives to the average user to participate in engagements. Every so often a new technology comes along and radically advances our ability to participate; here’s another one of those game changers that we’ve all been waiting for. Some of us might not have known we were waiting for it, but hey, did we know we wanted Youtube, iTunes or texting before they arrived?

Episode 2 from bv02 on Vimeo.

The next in the line of game changing technologies is Square, the mobile payment system.

From where I sit, Square’s importance goes beyond everything that’s being said about it: that it will be the winner in the mobile payment space, that it will take over traditional payment methods and that it’s a more user-focused way to pay. That’s all important, but beyond all of that, Square represents the first truly accessible mobile payment system to bridge the gap between physical and digital payments. Why? Think about this: every iPhone and iPad is now a portable point-of-sale machine. There were 125 million iPhones and 58 million iPads sold in the past year alone.

On top of that, Square’s system is by far the easiest to use. No messy accounts, no sign up costs and they’ll send you the Square payment processor for free.

What Square does for commerce goes right down to the grassroots level. Anyone and any business can use Square without any upfront costs. Farmers, pizza delivery systems, freelancers, taxis… You name it, they can now accept credit cards. I could sell you my stapler at my desk if I wanted to. This gives microbusinesses the same access to payment processing as the big guys, and enables person to person commerce with digital payments.

Is it going to take off? If user data from the US is correct, we can confidently say people love this technology. If imitation is the sincerest form of flattery, Square’s competitors love this technology just as much. Maybe Square isn’t the digital wallet that will end up winning the race, but one thing is for sure: the concept of a digital wallet and person to person mobile payments is here, and it’s important.

Everyone, especially businesses, should be thinking about this before they get left out of the transactions… again. For an example, just consider the state of the traditional music, video and phone business models right now.

Major media outlets are being cautious about making predictions or getting behind a specific product in the digital wallet race, but there are some excellent conversations happening in the online space about this.

To explore further, check out the following.

Why Square’s focus on the customer experience is its unique feature
What the Square and Starbucks alliance means for payment processors
How Square enabled mobile donations in the recent U.S. election

Another piece worth taking a look at is an interview with Jack Dorsey, published by Fortune Magazine. It looks at how Square as a company is focused on disruption in the payment processing industry, and gives a bit of insight into what kind of internal thinking drives them.

This is something to pay attention to. How do you see this playing out in the next few years?

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2 responses to “Square: Bridging the Gap Between Physical and Digital”

  1. Dan Auns says:

    I’m pretty stoked for this, as a small business owner – being able to accept credit card payments on the spot …….this is pretty empowering.

    I love how disruptive this is also: gateways, processors, corporate bank accounts, keypads, etc. Setting up a transactional business was such a pain in the ass, an expensive pain in the ass. Not any more.

    Love the QR jab too. Boom. #cheepshot

  2. Andrew says:

    Dan, thanks for the note. Totally agree. If the average user gets onto this they will realize how big of a step this is and how easy it is. I do not think square is the “End” product but the fact that we are seeing another disruption to another traditional business model is amazing. lets hope this pushes the standardization of mobile payment to for front and to the store front. Re the QR Jab, well what can you do. It has failed to excite.