Filed under: Analysis / Opinion, Hardware, Retail, Odds and ends, iPhone, iPod touch
What do you do after you start Twitter? Invent a credit card reader.
While it doesn't sound like anything groundbreaking, Dorsey's new company Square is developing a tiny white cube (see photo above) that plugs into the headphone jack on either an iPhone or iPod touch. The cube is a credit card reader, something missing from all of those credit card apps currently in the iTunes App Store.
The Square iPhone Payment System consists of the reader and an app. After a card swipe, the customer uses a finger to sign the iPod touch or iPhone, one of the participants in the transaction enters the customer's email address, and a receipt with the location of the transaction, the signature, and other standard information is emailed to the customer.
While most online journalists are anticipating that this device and software are going to be used in retail (can you say Apple Store?), I think Dorsey has bigger ideas - let's face it, the guy doesn't think small. So why not make it possible for anyone with an iPhone or iPod touch to be able to accept credit cards for payments? Word has it that the card reader's manufacturing price will be as low as US$0.40, which means that Square could give away the readers and still make money on the transaction fees.
[via Engadget]
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Reader Comments (Page 1 of 2)
John Doe said 11:15AM on 10-19-2009
I can see this catching on amongst street dealers and prostitutes!
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Gillan said 11:19AM on 10-19-2009
You know what's sad?
A lot of tuaw's posts, are old news, this was on most other blogs at least 3 days ago.
But tuaw does JUMP on board when the Apple Store is offline, as if it's news?
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Odineye said 1:24PM on 10-19-2009
Those of us who have lives that prevent us from spending every waking moment combing all of the other tech blogs appreciate this post being on TUAW today.
Your complaint about how you saw it elsewhere, on the other hand - not so useful.
mikehild said 3:07PM on 10-19-2009
You know what's sad? People who get all upset because they see an article about something they already read about elsewhere.
I, for one, was totally unaware of this until TUAW posted it. I really don't care that some other site posted it first, because I don't visit the other site.
imalmostjesus said 11:24AM on 10-19-2009
BREAKING NEWS: Apple store is down just like it is every other week! Stay tuned for those refreshed iMacs!!!!!!!!!
Update: back up...seems like there's nothing new.
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blurry said 11:33AM on 10-19-2009
@ Gillian
You know what´s even more sad. People bitching over TUAW instead of contributing with news. You could easily have sent this news 3 days ago to TUAW, and we would all be happy campers then.
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Gillan said 12:53PM on 10-19-2009
*Gillan
SocialCouch said 11:37AM on 10-19-2009
Definitely a great one but how secure is this thing?
"Uses a finger to sign"
On the screen??
OR is it some kind of finger print recognition?
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imalmostjesus said 2:40PM on 10-19-2009
PROTIP: iPhone screen has no scanner or recognition software. It just detects pressure from your finger.
BREAKING NEWS: IPHONE SCREEN CAN TAKE XRAYS AND MRI'S FOR CHEAP WITH APP STORE APP!
PR0F3TA (PSN - PROPHETA) said 11:40AM on 10-19-2009
Now my local hooker can ask me "Cash or credit" !... Sweet.
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Rob said 11:45AM on 10-19-2009
Boy the credit card thieves are gonna love this one.
Step 1: Get Free Credit Card Reader
Step 2: Steal an iPhone.
Step 3: Download App to Stolen iPhone
Step 4: Steal Credit Card(s)
Step 5: Charge, Charge, Charge!!!
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russdogg said 12:32PM on 10-19-2009
Why make things more complicated? Credit card thieves already do steps 4 & 5 just fine. It would probably make it easier to get caught using this thing since I'm assuming you'd have to link it with your actual account like Paypal.
brian said 1:27PM on 10-19-2009
Step 3: Download App to Stolen iPhone
--- using what account? The iPhone App Store app won't save your password. And I don't think you can easily switch it--it gets set up through iTunes. (Right?)
Chris said 1:36PM on 10-19-2009
First of all. If you are going to steal some credit card, then swipe it on an iPhone (yours or not) and charge that persons card to YOUR account your dumb.
This device would work with an App that then would have to be registered and approved by the card merchant service. For this to work you would already need to have stolen someone's identity and setup the iPhone credit card account in their name. And you would have to have access to those funds quickly. Because as soon as someone reports this the authorities will know EXACTLY who did this.
On a different note. Apple retail employees are looking at this and chomping at the bit to use an iPhone to checkout people rather then the Windows based EasyPay units they loathe.
jb510 said 11:16PM on 10-19-2009
@ Brain - What thief needs an iTunes account to install software? Jailbreak... install appsync... install cracked ipa of credit card software, which rather than making a charge just saves all the transaction info.
People have been stealing cards with card readers for a LONG time... they usually catch those people because the person stealing the card info steals it all from the same location (think waiters swiping cards)...
This is fantastic for those selling product/services on location, the wireless transaction devices currently available are insanely expensive with ridiculously high rates.
Bensawsome said 11:47AM on 10-19-2009
Can anyone say identity theft on the cheap? :(
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Jordan said 12:00PM on 10-19-2009
"What do you do after you start Twitter?"
Kill yourself
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Jordan said 12:02PM on 10-19-2009
"What do you do after you start Twitter?"
Kill Yourself
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Frank said 4:01PM on 10-19-2009
we heard you the first time.
Lee said 12:11PM on 10-19-2009
So if someone presented you with their mobile phone and asked you to simply tap in your credit card number, would you do it?
I know I certainly wouldn't, add to that the fact that your fingermarks are going to be all over the screen too for a low tech way of seeing your pin number even after the fact. This is completely insecure. We're already told now to check that the proper merchant banking terminals haven't been tampered with, if it's someone's personal phone (to all outward appearances) your bank is gonna laugh you out of the building when you say you want your stolen money back.
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