“New hardware, no merchant service fees, flat $439 price, 1.6 percent clip.”
Last Wednesday, Dorsey used his stake in Square Inc dive into the traditional over-the-counter electronic payments, lobbying a cut price $439 eftpos terminal at retailers fed up with rapacious interchange rates and merchant service fees.
The upsized gadget, Square Terminal, will offer a coloured touch screen, accept all cards bank terminals currently do but will not lock clients into annual or monthly contracts or minimum transaction volumes. It will try to capture market share from banks and the likes of Tyro that have carved out a lucrative niche in over the counter sales.
Jack Dorsey, said, “We’re growing with our sellers, introducing new hardware that is still easy to access and quick to set up, but is also designed specifically to give bigger and more complex businesses better options when it comes to choosing a payments platform.”
Rather than making consumers try and dig out a scheme substitute with a Mastercard or Visa bug, Square terminal will accept proprietary debit cards – that the good old fashioned SAV or CHQ cards running over eftpos rails.
Initially, Square was launched as a mobile phone powered reader device without Eftpos functionality. Now with its inclusion, it’ll challenge retail payments market because of its lower fees and broad footprint.
Jesse Dorogusker, Square’s head of hardware, told ITNews, “They don’t have to sign lock in contracts. No disconnect fees. These things are not good for small, medium or large business.”
Perhaps the biggest selling point will be sales and management software that ships native and can be integrated directly into Xero and MYOB.
Least-Cost Routing Explained
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