February 3, 2010
Social Media Week: Collecting Donations With Mobile Payment Device "Square"

At last night's Digital Divas event for Social Media Week, we were able to score a couple of the new Square mobile payment devices to take donations for Haiti. The product, from Twitter co-founder Jack Dorsey, hasn't hit the market yet, so guests got a sneak peek at the technology.
These small square devices plug right into a phone's audio input jack and let you swipe credit cards to make financial transactions.

More often than not, it took several swipes for the transaction to go through (but that's why it's still being tested, after all)

Once the card is swiped, you sign with your finger -- something that isn't easy to do right now, but could become more natural (just as teens are more dexterous with their thumbs thanks to texting).

Then, the best part, you can email yourself a receipt. This is currently an option at the Apple Store, and I can't wait until it becomes common practice. No more hanging onto tiny scraps of paper!

Receipts are accessible on a secure site online, and you can even search for them on their site.

To collect donations, we created a Square account in one person's name. However, Square is going to let you create a payer account yourself to speed up and secure every payment. By attaching your photo to your account, Square users will be able to visually confirm you are the card holder. Coming soon you will also be able to send text message to authorize every payment in real-time.
The service itself is actually going to have a built in microdonation system to make giving easy and routine. Just as many grocery stores and pharmacies now ask if you want to add a small donation to your bill, Square will enable microdonations by giving a penny of every transaction you take to a cause of your choice.
They are also building in a loyalty feature (that reminds us of what Foursquare is trying to do): "If you frequent a place that accepts Square, they will let them know you’re a repeat customer. That 10th cappuccino may be on the house, no paper coffee card required."
In developed countries, where people are used to using credit cards, this type of product may be the future of mobile payments, at least in the near term. The key is that it's tapping into an existing behavior, not creating a new one.












