Originally Posted by SpamSandwich
Square is an add-on for iOS devices. Do you really think people would be unwilling to get rid of the add-on?
Yes, that's the whole point with Square. If people were willing to get rid of the add-ons, they'd already use Paypal or similar. The bottom line is that people keep their money in banks (or use credit supplied by them) and it's the banks that want you to process the payments using cards whether it's online or physically. Every payment system that comes along will have to build on top of the mechanism the banks use to take the money out of the bank. An Apple mobile payments system will be limited to Apple devices, which is not the majority of people and retailers don't have a stake in which device manufacturer succeeds, they want to be paid for what they're offering to customers by any means.
Even if Apple offers a touch id payment system, retailers can't implement that exclusively so they will have to use both Square and Apple's touch id. Square covers every buyer, touch id covers a fraction of them. Both together gives full compatibility plus the convenience of touch id when it's available.
Square can keep going it alone though. The only risk is that someone flush with cash like Google comes along and buys them and then the hardware gets replaced with Android devices. Then they have no hope of integrating touch id with those retail outlets and instead Google would come up with their own Android payment system.
Another part of the retail process that's often missing is the link to accounting software or it's not straightforward to setup. The ideal setup is to have a full inventory management system, payment tracking and then accountancy package that gives out real-time info on how well the business is doing and it can easily produce tax returns.
Inuit + Square + iOS would make for a very powerful business management system. If Apple made the decision to go into physical retail transactions then that's where the suggestion comes in about them bypassing Square and building their own hardware for it. Their iPhone/iPod credit card swiper looks better than Square's so it's a possibility but then they compete with Square who already have business contracts. Why would a retailer use Apple's products over Square's? The rates wouldn't be better so they likely wouldn't and then they don't get the adoption anyway and that's what success in retail depends on.
What's the harm in letting someone else dominate the retail sector? They let Windows devices do this for years. If it doesn't cost them hardware sales then it's not all that big of a problem but this is why things like Windows end up being so hard to shift out the market because it's everywhere and in everything. Android is going to do this from now on and while I'd say it's preferable over Windows, it's not preferable over Apple's software.