Square has launched their new mobile card reader in the U.S., and their latest offering is compatible with both chip-based credit cards and also magnetic stripe-based cards.
The new Square card reader will be available for $29, which according to Square will make it the cheapest chip-enabled card reader available on the market. This affordability is expected to make it highly attractive to small businesses and independent vendors who are looking for cost-effective solutions to accept a variety of payment methods.
Compatibility and Security
The new chip-enabled card reader from Square will work with both Android and iOS devices, ensuring broad compatibility across different mobile platforms. This flexibility allows merchants to use their existing devices without needing to invest in new hardware. Additionally, the reader ensures that transactions are encrypted, providing a secure transaction environment for both merchants and customers. Encryption is a critical feature as it helps protect sensitive card information from potential breaches and fraud.
In October of next year, retailers in the U.S. will be required to switch over to the new chip-based card system, which is mandatory. This shift is part of a broader effort to enhance payment security and reduce fraud. Chip cards, also known as EMV cards, are considered more secure than traditional magnetic stripe cards because they generate a unique transaction code for each purchase, making it much harder for fraudsters to duplicate.
Additional Accessories and Pre-Orders
The company is also launching a new chip card accessory for their existing customers who use the Square stand. This accessory will allow current users to upgrade their systems without needing to purchase entirely new setups. This is particularly beneficial for businesses that have already invested in Square’s ecosystem and are looking for a seamless transition to the new technology.
Square is not taking pre-orders on both of these new chip-compatible devices, and the company says that they will start shipping in early 2015. This timeline gives merchants ample time to prepare for the upcoming mandatory switch to chip-based cards. Early adoption of these readers can also provide businesses with a competitive edge, as they will be able to offer their customers the latest in payment security technology.
Market Impact and Future Prospects
The introduction of this new chip-enabled card reader by Square is likely to have a significant impact on the market. By offering a low-cost, secure, and versatile payment solution, Square is positioning itself as a leader in the mobile payment industry. This move is expected to drive competition, encouraging other companies to innovate and offer similar or better solutions.
Moreover, the adoption of chip-enabled card readers is not just a trend in the U.S. but a global movement towards more secure payment methods. As more countries adopt EMV standards, the demand for such devices is expected to grow, providing Square with opportunities to expand its market reach internationally.
In conclusion, Square’s new mobile card reader is a timely and strategic addition to their product lineup. It addresses the immediate needs of merchants for a secure and affordable payment solution while also preparing them for future regulatory requirements. With its broad compatibility, enhanced security features, and competitive pricing, the new Square card reader is poised to become a popular choice among businesses of all sizes.
Source Square, The Next Web
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