So smartphones are everywhere, the mobile internet is taken for granted, yet using credit cards is still often a problem for one reason or another, whether on the buyer’s side or the seller’s. Can you say 2010?
Innovation is sometimes the combination of existing elements into exhilarating synergy, and I don’t just mean peanut butter on a banana. With technology today, so many ‘existing elements’ are out there to be combined that one senses pregnant possibilities before they actually happen. You knew that there had to be better ways of doing things like paying people on the spot with large amounts of cash, or using Paypal on a mobile device, didn’t you?
But let’s review: mobile device+software+connectivity has basically dissolved the concept of dedicated devices, or at least that of producing dedicated devices as a profit-making venture, which is the same thing. I know that some people will still be using a GPS device that does nothing but navigation in five years, although the prospect looks a lot less interesting now that I have Maps Navigation from Google. You tell me something that platforms-in-your-pocket can’t do today and I’ll toss you a calendar. Time, Moore’s Law and the profit motive will transform these little gadgets into what used to be known as supercomputers soon enough, but in the meantime a whole lot of mundane little daily hiccups will be exorcised from your life. It will be less about sheer computing power than the power of the new model, comprised of the three things I mentioned at the start of this paragraph.
Which brings us to Square.
Swiping my credit card usually works, except when it doesn’t because the vintage 1980’s card-swipe behemoth is dying a slow death behind the counter. Also it becomes more and more of a pain in the neck to actually have to sign something and be handed a paper receipt after a transaction, in places where I’m still asked to do so. And between typing and captchas and data entry, trying to use credit cards for online transactions becomes an unholy tedium circus. I can only imagine the frustration of merchants who lose sales for reasons totally unrelated to their customers’ ability to pay. Well what if there was a way to add something that you can carry on a key chain to the process? A little square thing that would greatly simplify the process of taking payments if you’re a merchant, and would help you square with your buddy without going to an ATM. Just a little link between existing tech that changes everything and shows a few dinosaurs the door. Om Malik did a great review of Square (launched by Jack Dorsey of Twitter fame) and its disruptive potential.