Square goes mainstream (updated link)
We all enjoy disruptive technology as consumers. Developments like Square’s payment system are a perfect example of people realizing “there is a better way to do this” and actually doing something about it. Hey, small business owners, remember the days of those “payment system” companies robbing you right in front of your eyes?
“Yes sir, that will be $2500 for the credit card machine, payable in 100 installments of $25 a month…and we will also be taking 3% of every transaction for VISA/MC and 3.5% for AMEX, thank you”
I was talking to the owner of a local business the other day who told me that he gets a surcharge on every transaction he swipes that is under $10. Wow. It’s (ironically) a small coffee shop – how many transactions do you think are subject to this arbitrary fee?
The “experience” didn’t stop with hefty fees. Good luck getting a live person on the phone to assist with an inoperable machine or a billing issue. Your brand and your revenue stream rests on your ability to take payments via card, and if your machine is down, your world stops….yet you couldn’t hold anyone accountable to meet your expectations as a customer.
Credit cards are such a staple of our everyday purchasing routine, we as consumers expect businesses to accept any and all forms of payment. When they don’t, you kind of look at them funny like “is this a legit operation?” Small businesses need to accept credit cards, so unfortunately, they are taken advantage of in the process. Excuse me for being sentimental, but shouldn’t we be encouraging people to start local businesses, not discouraging them with unreasonable fees on top of unreasonable fees?
Enter Square – eliminate the hidden fees…charge a flat fee for any type of card. Leasing a credit card machine? History. Eliminate the proprietary hardware and associated challenges by making a simple device that works via technology you already own and use every day. Create a vast online knowledgebase where customers can get support immediately. Truly act as a service provider, taking pride in the service you are delivering. As with most technology today, Square is taking the details out of the equation and making it simple – pay us a flat fee, and we will provide the service you require….no fluff.
The deal with Starbucks (SBUX) is a terrific win not just for them and for Square, but for small businesses, consumers, and fans of similar companies who challenge conventional thinking and fix what’s broken. Howard Schultz (Chairman & CEO of SBUX) sitting on Square’s board makes so much sense as it strengthens their credibility in the eyes of other retailers, who certainly are taking notice.
Way to go Square, and way to go SBUX for believing in and embracing disruptive technology.
What’s next? Replacing cash registers with iPads? Equipping everyone at your big box retailer with their own scanner and payment system via iPhone, so you can “check out” anywhere in the store? It’s all coming…and as consumers, our transactions are about to get much easier.