Accepting Credit Cards Is About to Get Cheaper and Easier

Starbucks and Square, a credit transaction company, have completed an agreement that is going to allow consumers to make purchases without having to take out their wallets.  Here is how The New York Times describes it in a column by Farhad Manjoo, “Silicon Valley’s Next Great Company:” 

In August, Square announced that, beginning this fall, it will process all credit card payments at Starbucks stores. When the system is fully up and running, customers will be able to shop at Starbucks just by saying their names: After you opt in, your name and photo will pop up on the Starbucks cashier’s screen when you enter the store with your phone in your pocket. To pay, you’ll just tell the cashier to put it on your tab. That’s it—you don’t have to remove your phone or swipe or sign anything.

Manjoo thinks that Square is on to something really big.  You probably know Square from those commercials where a small retailer takes credit card transactions by attaching a cube like device to a cell phone.  That is cool in itself but on top of that, Square is lowering the cost of taking credit cards to a

fixed monthly fee of $275 per month.  Again, here is how Manjoo quotes Square COO Keith Rabois: “There is no longer any excuse for an American business to not accept credit cards today—they're handicapping their own sales and profits if they don’t, and their customers will be happier if they do.”

I think this has huge potential to increase sales and reduce costs.  Check out the Square website and let us know your thoughts.