This article discusses Square, a
payments company that permits all businesses, regardless of size or savvy, to accept
credit cards by attaching a card reader to their Android, iPhone, or iPad. Jack Dorsey, co-founder of Twitter, leads
this company.
As the article notes, “Square
charges merchants 2.75 percent of the amount transacted when a card is swiped,
or $275 a month. That’s at the low end
of the fee scale. But it may also be too
low for Square to profit on payments below $10, which are a big part of
Square’s business.” Evidently, some
speculate that Square’s profit margin is unsustainable, given the fees charged
by credit card companies. However,
partnerships with such retailers as Starbucks offer hope to Square as it
attempts to expand the popularity of its tiny, white payment device.
My two reactions to this article
are seemingly contradictory. Predictably,
I am disappointed by the nearly universal rejection of traditional forms of
paper currency. Little by little, money
is becoming more of an idea and less of a germy, clanking, graffitied, yet
still satisfyingly tangible object.
Conversely, I do promote those
technologies and devices that assist small businesses. Because it is exceptionally difficult to
compete with the power sellers that manipulate and define this global economy, I
am pleased to read of a tool that specifically targets the world’s smaller
scale companies. From farmers to in-home
manufacturers, Square will aid such overlooked businesses as they complete
daily transactions. For this reason, I
view Square as a less superfluous technology than most others.
And thus, the double-edged sword
stabs us once more.
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