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Will Twitter founder Square Visa - MasterCard?

Further to my earlier post on Internet based payment applications, it looks like 2010 is going to be the year of alternate payments. We can see the high level of interest in the subject. Jack Dorsey - co founder of the omnipresent Twitter - has come up with a free Payment Dongle called Square. 

You can see his demonstration here - http://www.youtube.com/watch?v=DAJR0t-NlPk and other places on YouTube.

For Merchants, this must be sweet music resonating with cash saved on interchange fees. Square is going to be free! 

If mobile applications like these (Google payment, etc) catch on fast, the poor plastic credit card and the massive 'closed networks' running them may soon be history. 

What's more, Dorsey plans to launch an API in the future that will allow Square to connect to other financial systems and bookkeeping software. Do I see the entire front end application seamlessly integrated with the back end - at virtually no cost? Virtual ATMs - anyone?

So where does it leave Visa/ MasterCard with their elongated theses on the value of 'Interchange'? 

As for me, I will be watching this space with utmost interest in 2010!

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Comments: (1)

A Finextra member
A Finextra member 25 January, 2010, 14:36Be the first to give this comment the thumbs up 0 likes

I looked at youtube and didn't hear any discussion about the interchange fees. You mentioned that Square is going to be free and merchants will save on interchange fees. 

Could you kindly please direct me to articles that talk about this?

Thanks.

Marite