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My thoughts on how Square will impact the startup ecosystem.
David Lozano's profile photoLee “Chuck” Bagley's profile photoJames Wester's profile photoMax Cooper's profile photo
The message seems to be "losing money on every transaction is ok."
reminded me to order another one- had one in stock i was gonna buy, but a customer came in asking about one lol
that little white square credit card reader for your smartphone.
Square is amazing. I'm willing to give them a small percentage of my art sales at conventions in return for the ability to make those sales.

I fully endorse it.
Hmm so do I have to plug it into my phone to make a payment? I'll just pay with money
no, it is  for people who want to TAKE money- ie- customer for door to door says - all my cash is in the bank- thats ok- swipe here! now your hot-dog vendor can take plastic  from anywhere!
Yeah, it's for vendors to accept payments. Customers don't need to plug anything into anything. :)
Square is a dead end. I wound not invest in The Square.
+David Lozano -- I can explain for +Michael Kvorosten if he doesn't mind (though I'm not sure I'd go so far as to call it a "dead end).

High level view: At this point, for every transaction under about $10, Square loses money. And that's about their average transaction. They charge 2.75 percent and pay about that same amount in interchange and fees. (If you really want to go in-depth on the payments side, there are reasons why they're not able to lower those costs, namely that they're actually the merchant of record so they really don't have any room to negotiate either.) What's more, they have no 'add-on' services to make the transactions they process a loss leader.

It's a very smart idea, and I give them credit for taking an idea that was already out there and turning it into something disruptive. (They didn't invent the dongle.) But considering there are now dozens of competitors who have other services to sell on top of simply processing transactions, Square may find themselves losing money while losing share in a market that is changing away from the mag stripe as well.

I wish them all the luck in the world, and they've got some very smart people there, but it's going to be hard to sustain that model.
My science teacher claims to have had the idea of a phone (card swiper)
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