New 'Square' Service Powers Peer-to-Peer Mobile Payments
Twitter founder Jack Dorsey and his business partners have publicly launched a new start-up called Square. The purpose of Square is to give individuals and/or small businesses the ability to accept payments via credit or debit cards. The service consists of a card reader that plugs into a 3.5mm headset jack and can be used to swipe credit/debit cards. The service doesn't cost end users anything, and offers protection such as photo verification of payers and text message verification of payments. Square will include some elements of social networking, and businesses and/or establishments that accept payments via Square will offer rewards for continued patronage. Square says it will donate one cent of every transaction to the charity of the user's choice. Receipts can be emailed or sent via text message. The service is rolling out in a limited beta this month, and will open up to a wider audience in early 2010.
Damn this dudes are smart.
Example: Pizza delivery instead of giving your credit card over the phone they would just come with their company cell phone and just swiped the card as they hand you the pizza and you get your confirmation...
I think this is what this article is explaining.