Interesting idea, I really like the hardware piece.
Not sure how large of a market there is for this. Mom + Pop stores use CC terminals (cheaper than an iPhone), so that leaves this open to mostly people who accept payment outdoors at farmers markets, sports events, etc..
For that to work you'd have to be comfortable giving a merchant your credit card, which isn't a sure thing considering they can disappear without a brick+mortar store. Also, the merchant would have to be comfortable giving a customer their iPhone. I know I wouldn't want to hand out my phone to random people on the street.
That being said, it looks cool and if I had a store I would definitely give it a try.
it's unclear to me whether you need a merchant account to use square; i'm assuming from "0-$60 in under 10 seconds" that you don't.
if you don't need a merchant account, the market for this is massive. there are millions of people who provide services and sell products who take cash, check, or paypal only. many of these people are dying to take credit cards with zero hassle, which square lets them do.
I thought about that too. Someone has to have a merchant account, so it's possible all of the payments go through Square and they act as a clearing house where they redirect payment to the correct merchant. I could see that leaving them vulnerable to chargebacks. I wonder what kind of rates they're offering to users.
Is it cheaper than getting a terminal? The idea behind this is you already have a cell phone. Why by an additional device to do this, which worse yet has a bad interface and can't be upgraded.
Not sure how large of a market there is for this. Mom + Pop stores use CC terminals (cheaper than an iPhone), so that leaves this open to mostly people who accept payment outdoors at farmers markets, sports events, etc..
For that to work you'd have to be comfortable giving a merchant your credit card, which isn't a sure thing considering they can disappear without a brick+mortar store. Also, the merchant would have to be comfortable giving a customer their iPhone. I know I wouldn't want to hand out my phone to random people on the street.
That being said, it looks cool and if I had a store I would definitely give it a try.