Square introduces digital loyalty schemes to mobile payment app

Attempting to boost its value to both merchants and consumers

Mobile payment firm Square is adding customer loyalty features to its app as it attempts to boost its value to both merchants and consumers in the face of increasing competition. The firm is rolling out the update to its ‘Square Register’ app, which allows users to transform an iPad into a cash register, and its ‘Pay with Square’ mobile app, which lets users pay for goods using their smartphones. Merchants can now offer deals such as first-visit reductions to their customers, as well as dolling out personalised loyalty cards to bring in new business and encourage repeat custom from existing customers.

The move comes a week after Square announced that it is now handling USD6 billion in mobile transactions annually, up 20% from the volume of payments in April, when the firm reported USD5 billion. The figures show growing demand for the firm’s plug-in card reader, which allows merchants to take payments from customers using a tablet or smartphone device. Although this milestone indicates that the startup is beginning to mature, Square faces mounting competition, in particular from PayPal, which recently launched its own plug-in card reader.

Related reading

A hand holding a smartphone with $ icons on the screen, which is visually connected to a network of little people around it

Leave a comment