New payment App enters the market

Starbucks is always one step ahead in the payments game. Recently the coffee company’s CEO, Howard Schultz, agreed to adopt Jack Dorsey's (co-founder of Twitter) new payment system called ‘Square’, in their 7000 coffee chains across America. This payment system is considered game changing, surpassing mobile payments.

The system is simply a free iPad app, which turns into a digital cash register. Customers create a free square account by giving their name, setting up password security, uploading a profile picture and entering their Visa, American Express, MasterCard or Discover credit or debit card. What is amazing about the system is that when a Square-registered customer enters a shop, bar or restaurant with this system, their names and photographs automatically appear on the retailer’s iPad. When customers place an order, they say their name and the transaction is then approved by the retailer. This new system will be of huge benefit to cafes, bars and restaurants, which will increase service speed and also revenue.

The advantage Square has over mobile payments is that the system makes the process of purchasing even simpler. Who would of thought that payments were going to become easier than swiping a phone? However, like mobile payments people are sceptical to adapt. They are finding reasons not to adopt a payment system like this 'some people look the same' , and are asking questions such as ‘what if I am charged for browsing  in a shop by mistake or even deliberately’. Consumers are undoubtedly going to have issues with these new payment systems. However, it is predicted mobile payment spending will increase to $600 billion by 2016.  Therefore, it is only a matter of time before people really embrace these new payment methods.

It is interesting that the new ios Apple update will have a new version of maps for the iPhone and iPad, stealing Google’s thunder. With the new iPhone 5 due to be released in a couple of months it will be interesting to see if they implement something new in relation to mobile payments.

Ross Hartnett - Marketing Advisor