Square pushes Apple Pay contactless reader with new $1/week installment plan

AppleInsider · May 31, 2016 6:54PM

For businesses interested in buying Square's new Apple Pay-compatible contactless terminal but put off by its $49 cost, a new $1-per-week installment plan option is now available.

The new 60-week payment plan carries an $11 premium over the standard cost, but gives merchants more than a year to pay it off in full.

In a statement to AppleInsider, Square revealed that about 20 percent of "micro businesses" take out loans for operational expenses, such as the tools needed to run the day-to-day business. The new payment plan is intended to reach those small-business owners who may be apprehensive about adopting new technology due to upfront costs.

The latest Square reader not only accepts contactless NFC payments such as Apple Pay, but also supports EMV chip cards. It includes a battery and connects wirelessly to iOS devices and the Square point-of-sale app to complete transactions.

The Square contactless and chip reader launched late last year directly through the company, and expanded to Apple's own retail stores this February. Square is one of the most popular payment options for independent businesses, and its push to support Apple Pay could be a major aid to expansion of Apple's tap-to-pay service found in its latest devices.

Businesses using a Square reader must pay the company 2.75 percent for each transaction. In addition to Apple Pay, the new reader supports Android Pay and Samsung Pay.

mknelson · May 31, 2016 7:02PM

If you can't afford $49 up front…

you have bigger problems.

mike1 · May 31, 2016 7:04PM

mknelson said:

If you can't afford $49 up front…

you have bigger problems.

Exactly what I was thinking.

coolfactor · May 31, 2016 7:04PM

Headline says $1 per month.
Article say $1 per week.

And yes, $49 is not a split-minute decision. All of these costs add up, particularly for small businesses and sole proprietors. I currently pay $300-$400 per month just to keep my small business "in business". Adding $50 here and there is not something I'm willing to do without careful consideration.

adrayven · May 31, 2016 7:06PM

We're the only country without contactless cards. EU, Canada, hell, Mexico is going full tap-and-pay with cards. It's secure but noooo, we have to be 'different' - even though the card readers with ENV chip reader supports tap-and-pay, they refuse to enable it. For some reason dragging the financial processing market into the present day is like pulling teeth in the US of A.

wigby · May 31, 2016 7:15PM

coolfactor said:

Headline says $1 per month.
Article say $1 per week.

And yes, $49 is not a split-minute decision. All of these costs add up, particularly for small businesses and sole proprietors. I currently pay $300-$400 per month just to keep my small business "in business". Adding $50 here and there is not something I'm willing to do without careful consideration.

Disagree. This is not an "it adds up" cost. This is a payment processing system from a lucrative bunch of shoppers for $49! If it was $499, I would pause before buying. Anyone who pauses before buying this either already has a contactless payment solution in place, doesn't have a physical retail location or is just penny-wise and pound foolish and shouldn't be in any business at all.

bobschlob · May 31, 2016 7:42PM

mike1 said:

mknelson said:

If you can't afford $49 up front…

you have bigger problems.

Exactly what I was thinking.

Exactly, exactly what I was thinking.

sandor · May 31, 2016 7:43PM

coolfactor said:

Headline says $1 per month.
Article say $1 per week.

And yes, $49 is not a split-minute decision. All of these costs add up, particularly for small businesses and sole proprietors. I currently pay $300-$400 per month just to keep my small business "in business". Adding $50 here and there is not something I'm willing to do without careful consideration.

and, as usual, AppleInsider simply quotes itself in the article, rather than having actual useful links to the product.

https://squareup.com/shop/reader-contactless-chip-60-week

$1 a week

To the idea of $49 being "inexpensive":
in the US, fraud liability is on the retailer if they do not use EMV chip. so that $49 also removes that liability.

edited May 2016

bobschlob · May 31, 2016 7:46PM

coolfactor said:

Headline says $1 per month.
Article say $1 per week.

And yes, $49 is not a split-minute decision. All of these costs add up, particularly for small businesses and sole proprietors. I currently pay $300-$400 per month just to keep my small business "in business". Adding $50 here and there is not something I'm willing to do without careful consideration.

How is a payment terminal a "here and there" thing?
Lunch and then an afternoon coffee with a cookie is a "here and there" thing. (for about the same cost)

mac_128 · May 31, 2016 8:17PM

coolfactor said:

Headline says $1 per month.
Article say $1 per week.

And yes, $49 is not a split-minute decision. All of these costs add up, particularly for small businesses and sole proprietors. I currently pay $300-$400 per month just to keep my small business "in business". Adding $50 here and there is not something I'm willing to do without careful consideration.

It's a one time tax write off on a capital investment. Most small businesses should be looking for those. Moreover, it shifts the liability for credit card fraud back onto the card issuer, and that's pretty cheap insurance.

edited May 2016

zimmie · May 31, 2016 8:33PM

adrayven said:

We're the only country without contactless cards. EU, Canada, hell, Mexico is going full tap-and-pay with cards. It's secure but noooo, we have to be 'different' - even though the card readers with ENV chip reader supports tap-and-pay, they refuse to enable it. For some reason dragging the financial processing market into the present day is like pulling teeth in the US of A.

I work in the credit card industry. Tap-to-pay cards are secure compared to shouting your card number at the top of your lungs, but that's about it. Then again, as many as seven companies see your card every time you swipe at a gas pump. The whole industry is held together with baling wire and a prayer.

mac_128 · May 31, 2016 9:44PM

zimmie said:

adrayven said:

We're the only country without contactless cards. EU, Canada, hell, Mexico is going full tap-and-pay with cards. It's secure but noooo, we have to be 'different' - even though the card readers with ENV chip reader supports tap-and-pay, they refuse to enable it. For some reason dragging the financial processing market into the present day is like pulling teeth in the US of A.

I work in the credit card industry. Tap-to-pay cards are secure compared to shouting your card number at the top of your lungs, but that's about it. Then again, as many as seven companies see your card every time you swipe at a gas pump. The whole industry is held together with baling wire and a prayer.

Maybe you could clear up the myths about those credit card shields they sell on TV -- I've typically not been concerned about it since none of my cards are tap-to-pay capable, and my understanding is that's the only type of cards that can be skimmed, not chip & signature only.

nolamacguy · May 31, 2016 10:33PM

coolfactor said:

Headline says $1 per month.
Article say $1 per week.

And yes, $49 is not a split-minute decision. All of these costs add up, particularly for small businesses and sole proprietors. I currently pay $300-$400 per month just to keep my small business "in business". Adding $50 here and there is not something I'm willing to do without careful consideration.

i disagree. $50 for a POS solution is peanuts. if your small biz can't invest fifty bucks into your POS solution, you have a hobby -- not a business.

edited May 2016

esquirecats · May 31, 2016 11:50PM

"Small business owners" who think this is expensive are speaking nonsense. Card payment terminals and cash registers are significantly more than $49 + Cost of iPad. (Here the payment terminal is anywhere between $150-$400+monthly+%, a good register is between $1k-$2k)

ajmas · May 31, 2016 11:51PM

Is this available for merchants outside of the US? Couldn't see any information on this?

gatorguy · June 1, 2016 12:01AM

wigby said:

coolfactor said:

Headline says $1 per month.
Article say $1 per week.

And yes, $49 is not a split-minute decision. All of these costs add up, particularly for small businesses and sole proprietors. I currently pay $300-$400 per month just to keep my small business "in business". Adding $50 here and there is not something I'm willing to do without careful consideration.

Disagree. This is not an "it adds up" cost. This is a payment processing system from a lucrative bunch of shoppers for $49! If it was $499, I would pause before buying. Anyone who pauses before buying this either already has a contactless payment solution in place, doesn't have a physical retail location or is just penny-wise and pound foolish and shouldn't be in any business at all.

I have one at the checkout desk and TBH I could have done without it. It's been used a grand total of three times in 4 months, and one single time for Apple Pay. That's it. Using the standard Square swipe reader several times a day is preferred for the time-being.

edited May 2016

lostkiwi · June 1, 2016 3:11AM

gatorguy said:

wigby said:

Disagree. This is not an "it adds up" cost. This is a payment processing system from a lucrative bunch of shoppers for $49! If it was $499, I would pause before buying. Anyone who pauses before buying this either already has a contactless payment solution in place, doesn't have a physical retail location or is just penny-wise and pound foolish and shouldn't be in any business at all.

I have one at the checkout desk and TBH I could have done without it. It's been used a grand total of three times in 4 months, and one single time for Apple Pay. That's it. Using the standard Square swipe reader several times a day is preferred for the time-being.

What do you sell, GG?

rayz2016 · June 1, 2016 5:33AM

lostkiwi said:

gatorguy said:

I have one at the checkout desk and TBH I could have done without it. It's been used a grand total of three times in 4 months, and one single time for Apple Pay. That's it. Using the standard Square swipe reader several times a day is preferred for the time-being.

What do you sell, GG?

Dreams, my friend, he sells dreams… A better Googley world…

edited June 2016

rayz2016 · June 1, 2016 5:37AM

bobschlob said:

mike1 said:

Exactly what I was thinking.

Exactly, exactly what I was thinking.

Damn! I'm last in the queue again!

If Square thinks $49 is the problem then I'm afraid they're looking in the wrong place.

If I might direct management's attention to the 2.75% transaction fee… The device is priced for the small business, the transaction fees are not.

edited June 2016

ksec · June 1, 2016 9:36AM

transaction cost in US is RIDICULOUSLY expensive.

gatorguy · June 1, 2016 11:06AM

lostkiwi said:

gatorguy said:

wigby said:

Disagree. This is not an "it adds up" cost. This is a payment processing system from a lucrative bunch of shoppers for $49! If it was $499, I would pause before buying. Anyone who pauses before buying this either already has a contactless payment solution in place, doesn't have a physical retail location or is just penny-wise and pound foolish and shouldn't be in any business at all.

I have one at the checkout desk and TBH I could have done without it. It's been used a grand total of three times in 4 months, and one single time for Apple Pay. That's it. Using the standard Square swipe reader several times a day is preferred for the time-being.

What do you sell, GG?

Retail/commercial graphic design and production. Primarily business services but also significant same-day/next-day image reproduction and large/grand-format graphics so some walk-in foot traffic as well.

edited June 2016

Square pushes Apple Pay contactless reader with new $1/week installment plan

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