Square’s technology is very smart. The boxy credit card magnetic stripe reader convert the information into audio, then iPhone, Android’s Square application converted audio to digital information and then transmitted these encrypted payment information to the server, the server side then return the success information of credit card.
The hardware cost of Square is very low, it is entirely in the free distribution, but also thanks to the 3.5mm audio interface to adapt to a very wide and can support almost any of a smart phone. In the past year, Square has also been making a lot of progress, the total funds raised to it has risen to $ 37,500,000, while the number of co-operation of the business saw a monthly rate of 30,000 to 50,000 fast growth.
To enhance the competitiveness, recently Square replaced the original single transaction for the $ 0.15 fee, which for small transactions under $ 10 makes sense, and now merchants only pay 2.75%. Its pricing strategy is very simple, far above the traditional way of charging, it eliminates the fixed transaction costs, Square’s pace of development will presumably go fast.
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