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> They have not yet delivered a polished product that's enjoyable to use and makes lots of money. The small business I work for recently switched to Square Reg
by larzang 12y ago
> They have not yet delivered a polished product that's enjoyable to use and makes lots of money.
The small business I work for recently switched to Square Register via an iPad and the Square Stand for all POS and it's pretty brilliant. It's a big step up from using a phone plus the regular little reader, and setup and use are quite simple even for our tech-illiterate employees. Judging by the popularity of the related receipt printer and cash drawers on Amazon, we're far from the only ones to make this jump recently.
I don't know how much money they're making per $100 stand, but they've made the barrier to a modern flexible POS system so low that I'd be surprised if their share of the payment processing pie isn't growing quickly.
- abalone 12y agoIt's not the stand they make money on, it's the 2.75% payment processing rate. That is higher than what competitors charge (closer to 2%), and as business grows that can add up to a significant premium. That is what drives them off of Square. So there's a kind of glass ceiling there.. to keep those customers Square would need to renegotiate a lower rate that trims down their gross margin. Square does have a really good niche in the mom-and-pop shops where 2.75% is an ok price given the easy of signup and free POS system. But at the same time there may be significant customer acquisition and support and fraud costs in that niche.