Square processing USD4bn in mobile payments

Square Register

Mobile payments firm Square claims it is now processing USD4bn in payments per year, up from USD2bn in the last quarter, indicating that the firm has doubled its capacity in the space of three months. The figures suggest that Square is closing in on online payments giant PayPal, which notched up USD4bn in mobile payments last year, as competition in the space heats up. The news comes as Square launches a new app that allows merchants to use an iPad as a cash register in the latest attempt to digitise point of sale (POS) transactions. Dubbed Register, the app tracks customer purchase history and analyses peaks and troughs in payments over the day, as well as making it possible to set up loyalty programmes for regular customers as the race to bring offline bricks and mortar retailers online continues.

Register’s launch comes as Square attempts to tighten its relationships with merchants. In December the firm claimed to have signed up 1m shops, restaurants and retailers in the US, accounting for more than 10% of the merchants who accept credit cards in the region. Square is now attempting to increase this margin amid growing competition from established mobile payment services such as PayPal, as well as newer offerings such as Google Wallet and Visa’s V.me service.

I truly believe POS, as you know it today, is dead,” says Square product director Megan Quinn in an interview with USA Today.

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