30 July 2016
Find out more

Following VeriFone spat and Visa investment, Square adds encryption

03 May 2011  |  9060 views  |  0 Security/Risk

After a high-profile spat with rival VeriFone over its security credentials, mobile payments start-up Square is set to roll out new, encryption-capable, hardware.

VeriFone launched a public attack on its smaller rival in March over Square's hardware which cannot encrypt card data. In an open letter, VeriFone CEO Douglas Bergeron accused Square of "serious security flaws" that put "consumers in dire risk".

Square boss Jack Dorsey insisted VeriFone's allegation was "not a fair or accurate claim" and the scuffle was generally viewed as a public relations loss for the aggressor.

However, last week Square received a strategic investment from Visa on the same day that the card giant released a set of mobile acceptance best practices for merchants, software developers and device manufacturers.

The guidelines say firms should "encrypt all account data including at the card-reader level and in transmission between the acceptance device and the processor - especially important given the use of wireless or public networks".

Square COO Keith Rabois took to the Visa Security Summit Web site, writing a blog in which he says: "Of course, Square complies with all current industry standards, and we are committed to meeting or exceeding industry guidelines as they evolve - all while keeping our card reader free."

Then, according to the StorefrontBacktalk site, Sam Quigley, security lead at Square confirmed at the Visa conference that the firm will begin rolling out an encrypting card reader this summer.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Visa invests in Square

Visa invests in Square

28 April 2011  |  14403 views  |  1 comments
VeriFone taps Facebook to bash Square

VeriFone taps Facebook to bash Square

22 March 2011  |  8835 views  |  0 comments
Square accused by rival of massive security failing

Square accused by rival of massive security failing

10 March 2011  |  12578 views  |  5 comments
Square processing $1m per day; Apple boasts payment stats

Square processing $1m per day; Apple boasts payment stats

03 March 2011  |  11990 views  |  4 comments
Square begins mass-market roll out

Square begins mass-market roll out

10 November 2010  |  11477 views  |  4 comments
Square roll-out delayed over security concerns

Square roll-out delayed over security concerns

21 June 2010  |  13504 views  |  1 comments
Twitter founder Dorsey launches mobile phone credit card reader

Twitter founder Dorsey launches mobile phone credit card reader

02 December 2009  |  14699 views  |  2 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit capgemini.comFind out more

Who is commenting?

Top topics

Most viewed Most shared
Groupe BPCE agrees to buy FidorGroupe BPCE agrees to buy Fidor
8154 views comments | 36 tweets | 53 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
7098 views comments | 16 tweets | 22 linkedin
hands typing furiouslyManaging Big Data After Brexit
6758 views 0 | 6 tweets | 8 linkedin
hands typing furiouslyBank of Pikachu? What does Pokemon Go mean...
5709 views 0 | 11 tweets | 9 linkedin

Featured job

Find your next job