Square, a startup company that strives to make mobile payments easy and accessible for businesses, has changed a couple of its rules recently in order to stay in the game. Last year, the company released an iPhone, Android and iPad application that allows businesses to process and manage credit card transactions with a small credit card swiping device that plugs into the headset or microphone jack of a device. The application was created by Twitter co-founder Jack Dorsey along with Jim McKelvey.
In order to compete with Square though, the well-established payment company PayPal has created a new in-store solution for businesses to use. For years, PayPal has remained stagnant with its safe online payment program causing COO of Square Keith Rabois to call their brand “atrophied.” The startup company is already up to $2 billion in annual payments from businesses using their application and is continuing to grow. According to TechCrunch, they changed a couple clauses in their policy so that they can continue to grow. Before, when businesses processed more than $1,000, anything over $1,000 would be held by Square for a certain amount of time. It could range from a couple hours up to a month. Now, those limits are taken away so that all businesses using the device will get that money on the same day. They also dropped the $0.15 charge that was applied to businesses for every transaction made. In a TechCrunch article, Rabois said, “We’re not going to sleep until we improve the entire experience of buying and selling. Every month we’ll have improvements to the product.”
Whether or not PayPal’s new in-store application will actually hinder Square’s business is yet to be seen. But as TechCrunch stated, with more products and improvements set to debut soon for Square, it will be interesting to see how they continue to innovate and build out its user base.