Why Square and how does it innovative
According to the smartphone usage statistics 2012, “Android has the highest market share with 46.9% – the iPhone has 28.7%”. Which show that there is a large population of people are using the smart phone and iphone. Square Company innovated a white plastic card reader, a device that lets small businesses use phones and tablets to accept credit cards. “A tiny,sleek device that turns an ordinary smartphones into a credit-card reader and looks set to transform mobile payments.” [Fitzgeorge-Parker 2010] This idea came to Jack Dorsey, the inventor of Square, because his friend Jim McKelvey, a glassblower, was complaining about that he failed to make a sale since he did not have the access to credit card. Jack and Jim believes there are many small business man are in the same situation. Therefore they saw the opportunity and “Square was introduced in early 2010 by Square Inc. by Jack Dorsey and Jim McKelvey” (Square Website). A year later, “the company has grown from 150 employees to more than 400 and now processes $8 billion in annualized payments. Compare that to one year ago, when the same figure was $1 billion, and it becomes easier to visualise Square's upward swing.” [Welch, C(2012)] The Square is now available for the iPhone, iPod, iPad and all Android-based mobile phones. From most Journals and News I read, calling Square a mere payment machine seems minimize its potential. It is now one of the fastest growing and competitive technology companies in the world, because of its unique entrepreneurship and the huge technology innovation. Square not only provides a platform for small retailers to access credit card service in order to compete with large companies and attract credit card usage customers, but also offers customers more options when making purchasing decisions between large companies versus small retailers. Therefore, Square has given small retailers a new life and turned the technological payment innovation into a whole new page.
Business Model of Square
At the very beginning, Square is invented in 2010, Square company is trying to provide the convenience way for everyone to access the standard credit card through their mobile phones. Square’s mobile card reader is invented to be able to accept credit card anywhere for anyone at the anytime with one simple rate charged on each transaction. When the company only got one product which is the credit-card reader, the marketing for Square was very small. Since then the company has had a number of "resets" (new innovation) that “have brought to life the idea contained in that little reader” said Jack Dorsey. The Square Register “serve as a full point-of-sale system for businesses to accept payments”,[Square Website] which replace the traditional cashier by “digital wallet”. It provides the whole sale inventory which allows the business man easier to manage their business. Users register their card details to Square’s system, and they can track their locations via GPS, which tells merchants when someone using Square walks into their shops. Square Wallet, “available in the US, is the most seamless way to pay, enabling individuals to pay with their names at their favorite local businesses”. [Square Website] Square also Launched Square directory for buyers and sellers, it is the first web-based search engine that help buyers to discover new places to shop, search menus by item, and find nearby loyalty deals and specials. Sellers can easily advertise their special offers to attract customers. “Over 200,000 businesses have already listed themselves in the Square directory, making it easier than ever for sellers to showcase their offerings and for buyers to find new businesses in their area where they can pay with Square Wallet.” [Square Website] Right now, Square seems like not only a credit card reader but also a dictionary of all small business in the local area. “Square's nearly instant transactions offers an added...
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