Just a year after constructing a UK entity of business called the Square, the payment company will start doing business marking its first nature in Europe. It has the service for turning tablets and smartphones into devices of point-of-sale. This innovation means that the British economy plus its technology is under siege.
The Square reader, which will sell at £39, is a piece of hardware which connects via Bluetooth to your tablet or phone for turning the device into a card reader for payments. Additionally, the square will reduce transaction costs by 1.75% and 2.5% for online sales via the electronic invoice or phone.
This news came at a London event where Jack Dorsey, the CEO, was attending and one of the Square customers was attending. He stated that the company will focus on targeting both small and medium business clients that have not yet taken any card payments.
Dorsey said that many people have not yet been reached. He said that the market has mobile payments competition but Square will be quick in turning around the payment processes. He stated that customers would be able to access money on the following morning. Square also has interests of adding additional financial services like Square Capital for getting cash advance before diversifying its business services.
This reader is not the first foray for entering the UK business. There was a point-of-sale software in 2014 that allowed people process virtual payments worldwide. This aspect did not perform well in promoting the business.
Square has come up with the easiest way of making companies to get card payment systems via a tablet app with a minuscular piece of hardware. This service is aimed at those businesses that have never taken any previous card payment services and have found bank fees very expensive.
This service had a ready UK market. Since there are millions of sole traders, small and medium businesses, the population of UK consumers prefers paying by use of cards. Seventy percent of payment transactions in the UK is done using cards.
It is unsurprising to note that since Square started doing business, several other companies have come in to offer similar services like PayPal, iZettle, and SumUp just to name a few.
Due to the market having many businesses that have not adopted card payment services, people believe that Square has missed the chance of making a market splash.
Nevertheless, if you check other tech businesses, it is never the first mover that wins. Being the first does not imply being the best. It is important to watch if Square will gain traction as it enters the UK market. It is also moving beyond payment via the tablet to specific industries such as ordering and delivery of food, cash advances and invoicing.
In the last financials, square noted that new products adjusted its revenues. Harvey did not comment if the company is planning on introducing new service in the UK. He did not share on the probability of expanding the UK market. The last revenue results increased by up to thirty-five percent. The hardware sales, services, and subscriptions also showed growth.