Square plans to begin accepting Apple Pay with new NFC-compatible hardware in 2015
Though many viewed them as competitors, Square and Apple Pay will link up in 2015, as the point-of-sale service is working on a new cash register that will accept Apple's NFC-based payment system.
Square founder Jack Dorsey confirmed his company's plans for next year in an interview with CNN, published on Friday. Dorsey said that Square isn't interested in offering credit cards or payment devices, but instead wants to become the default register that accepts users' payments.
Square's current systems, which integrate with Apple's iPhone and iPad, require traditional, swipable credit cards in order to process transactions. The company began taking preorders earlier this month for new readers that will support chip cards, ahead of a switch to EMV-compatible credit cards by issuers coming in 2015.
But neither the headphone-jack-based Square Reader nor the iPad-based terminal Square Stand are currently compatible with tap-to-pay services like Apple Pay. Adding support would require the inclusion of a near-field communications receiver for securely accepting payment information.
Dorsey didn't say whether an NFC-compatible Square Reader or Square Stand or both are in the works, or if his company is planning an entirely new type of register to add Apple Pay support. But the CEO did pledge that support for Apple Pay will arrive in 2015.
Apple Pay was activated on the iPhone 6 and iPhone 6 Plus last month via a software update. It utilizes established NFC technology to initiate transactions, though Apple has also integrated its Touch ID fingerprint sensor into the process for ease of use and strong security.
After it launched, Apple Pay got off to an incredibly strong start in the U.S., quickly surpassing competing services that have been on the market for years, like Google Wallet. Apple Pay has been a hit with consumers because it allows them to use their existing credit cards, and receive the benefits and rewards they have become accustomed to, rather than utilizing a debit card or bank account with no rewards for spending.
Rumors from earlier this year claimed that Apple considered buying Square at some point, but the iPhone maker ultimately "soured" on the prospect of a deal. Apple does, however, continue to carry Square products for mobile transactions in its retail stores.
Square founder Jack Dorsey confirmed his company's plans for next year in an interview with CNN, published on Friday. Dorsey said that Square isn't interested in offering credit cards or payment devices, but instead wants to become the default register that accepts users' payments.
Square's current systems, which integrate with Apple's iPhone and iPad, require traditional, swipable credit cards in order to process transactions. The company began taking preorders earlier this month for new readers that will support chip cards, ahead of a switch to EMV-compatible credit cards by issuers coming in 2015.
But neither the headphone-jack-based Square Reader nor the iPad-based terminal Square Stand are currently compatible with tap-to-pay services like Apple Pay. Adding support would require the inclusion of a near-field communications receiver for securely accepting payment information.
Dorsey didn't say whether an NFC-compatible Square Reader or Square Stand or both are in the works, or if his company is planning an entirely new type of register to add Apple Pay support. But the CEO did pledge that support for Apple Pay will arrive in 2015.
Apple Pay was activated on the iPhone 6 and iPhone 6 Plus last month via a software update. It utilizes established NFC technology to initiate transactions, though Apple has also integrated its Touch ID fingerprint sensor into the process for ease of use and strong security.
After it launched, Apple Pay got off to an incredibly strong start in the U.S., quickly surpassing competing services that have been on the market for years, like Google Wallet. Apple Pay has been a hit with consumers because it allows them to use their existing credit cards, and receive the benefits and rewards they have become accustomed to, rather than utilizing a debit card or bank account with no rewards for spending.
Rumors from earlier this year claimed that Apple considered buying Square at some point, but the iPhone maker ultimately "soured" on the prospect of a deal. Apple does, however, continue to carry Square products for mobile transactions in its retail stores.
Comments
They know the market as well as anyone, NFC for payments was guaranteed to be DOA unless Apple supported it. Now that they have, it's a safe technology to proceed with.
best burns imitation "excellent"
what?
what?
I got a notice from Square last week that I was invited to preorder a chip card reader for $29. Strange since they'll be free from them and all of the competition once the shipped cards become the standard. I can see them charging a bit for an NFC reader though.
I got a notice from Square last week that I was invited to preorder a chip card reader for $29. Strange since they'll be free from them and all of the competition once the shipped cards become the standard. I can see them charging a bit for an NFC reader though.
Actually, Square already said that, although the initial reader had been free, the chip-enabled one was non-trivially more expensive and they'd have to charge for it. I do expect that there'll be deals and bundles though.
It's puzzling to me that Apple included NFC in iPad but not the antenna. I can understand that not many people would use iPad at a checkout but there are a number of other uses for it.
Since iPhone 6 does include the antenna (obviously) I can imagine that Square might also offer direct Apple Pay support TO an iPhone 6 and processed by Square. That'll have to wait for Apple to allow access to the NFC hardware though.
Actually, Square already said that, although the initial reader had been free, the chip-enabled one was non-trivially more expensive and they'd have to charge for it. I do expect that there'll be deals and bundles though.
Ah, thanks. I missed that. I will wait until the chip and NFC options are available then. This is a side-business with few in-person transactions anyway. Next big batch of on-site sales (swim photos) will be in June.
I wouldn't hold your breath. The iPad doesn't include the antenna, but most Square transactions are done with iPhones anyway. I've seen a few Android users, but they're the exception.
Speculatively speaking, I think somewhere along the production of the iPad device they decided that the position of the NFC chip and the position of where people expect to use it doesn't line up, so they just disabled the NFC part of it. In the iPhone the chip is somewhere around the middle of the PCB, but on the iPad it's on the middle-left when held portrait-wise. The iPad is larger than the NFC "tap" area.
:???:
the exception? Square Register has between 1M and 5M downloads on Google Play.
https://play.google.com/store/apps/details?id=com.squareup&hl=en
If you go by the number of ratings alone it would indicate the Android version (46,941 ratings) is used a heck of a lot more than the iPhone one (14,111 ratings) .
I wouldn't hold your breath. The iPad doesn't include the antenna, but most Square transactions are done with iPhones anyway. I've seen a few Android users, but they're the exception.
What are you talking about? Anecdotal evidence? The iPad as a Square terminal is ubiquitous at small shops all over LA.
Speculatively speaking, this strongly suggests that external access to NFC will likely be supported for third party readers, as I doubt Square would roll out a new POST with less than a year before all terminals in the US will be converted to NFC compatible. Now that they're saying they will support it, it makes even less sense. So the only explanation is en external reader. And if that's the case, why not an external reader for the iPhone 5 series, like the Incipio CashWrap (cause frankly I'm not interested in the ?Watch)?
They might make an adaptor for the ipad
the exception? Square Register has between 1M and 5M downloads on Google Play.
https://play.google.com/store/apps/details?id=com.squareup&hl=en
If you go by the number of ratings alone it would indicate the Android version (46,941 ratings) is used a heck of a lot more than the iPhone one (14,111 ratings) .
thats great and all, but real world results may vary. in my city i use Register-equipped businesses weekly, and I've never seen anybody use an android phone to pay.
maybe its like those nebulous android activations going on. still haven't seen anybody use an android tablet in real life. cafes, airports, planes...just don't seem em. plenty of iOS devices actually being used, tho.