Square, the small cubic credit card reader that works with smartphones and is the brainchild of Jack Dorsey, one of the founders of Twitter, is now processing more than $1 million per day in transactions. This news comes a couple of weeks after Square removed its 15-cent fee on credit card payments; now its transaction fee is strictly 2.75%.
This is an astonishing showing for the innovative young company, which officially launched its product only last month, on February 11. The device is designed to be a simple and inexpensive alternative to merchant card terminals.
But Square still has a long way to go to catch up to the incumbent mobile payment leader, PayPal, which processed $141 million in mobile transactions in 2009 and expected to close out 2010 with over $500 million in mobile payment volume. More than five million members regularly using PayPal from mobile devices.
Jack Dorsey recently told Vanity Fair that he is trying to get New York City taxis to use Square and that he dreams of one day being mayor of New York City.