iPhone Payment System Launches at Clothes Store — Why Not at Apple?
9:17 am, August 3rd, 2009, Nicole Martinelli
A hip purveyor of denim goods in New York called Self Edge has launched an iPhone payment system.
Code named (ironically?) “Square,” it consists of a small, plastic card reader that fits into headphone jacks of iPhones (or iPod Touches) and transfers swiped credit card info to an app.
According to coolhunting, it works like this: a store employee totals up merchandise, then the customer adds a signature with their finger via touchscreen. The customer then adds the email address where they want the receipt sent to.
Kiya Babzani, co-owner of Self Edge, told Cult of Mac that Square has plenty of plusses for retailers in a system “expected to expand beyond retail and credit card use.”
“There are no recurring fees for Square, so it costs nothing to sign up. Current fees are 2.5% (+.50 cents) per transaction, extremely low compared to regular credit card rates, they normalize the fees so even if the payer uses an AmEx card, you still pay the same 2.5% which is unheard of in the credit card processing world.”
Another nifty feature: the receipt includes a map showing where the purchase was made, nice if you have to prove those distressed denims were somehow a business expense.
What’s the customer reaction to the iPhone system so far?
Babzani says: “Most people are loving it and are interested in where the product will go once it’s rolled out on a large scale.”
Meanwhile, Apple stores still have those comparatively clunky Windows-based mobile devices, rumored to be replaced by an iPhone-based system in September 2009.
In the meantime, what do you think of iPhone payments?
Images courtesy Coolhunting
Posted by Nicole Martinelli in News, Retail Stores | Comment on this article
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probably because the battery would only last till lunch time…
iphone user, on August 3rd, 2009 at 9:47 am
I’m confused about where the actual payment comes from — do you know? Is the app linked to your bank account?
JAYnLA, on August 3rd, 2009 at 9:51 am
they are using the new accessories support in 3.0 and merchant apps. apple will likely move to such a system soon but they will need a secure system created very likely just for their stores that can interact with all the various subsystems that a retail shop as complex as theirs has. thus the fact that they didn’t roll it out the day after 3.0 released.
Lucas, on August 3rd, 2009 at 10:52 am
I was in a Apple store recently and saw then using an iPhone or iPod Touch system for payments.
Greg Smith, on August 3rd, 2009 at 11:24 am
*un-distressed denim… just a little correction
non, on August 3rd, 2009 at 12:02 pm
Greg — or anyone else — did you take any pics? Last time I was in an Apple store (SF, about 2 weeks ago) they were still using the old system…
Nicole Martinelli, on August 3rd, 2009 at 12:15 pm
non — why “un?” I know it’s fashionable now, but I spent one summer editing a book called the “Denim Bible” and distressed denim strikes me as the most unbusinesslike expense possible…
What am I missing?
Nicole Martinelli, on August 3rd, 2009 at 1:06 pm
greg n nicole
they are using the old system for the payments still but for everything else i.e. one on one reservations n things like that r done with the ipod touch
if neone knows otherwise would be happy to know
issi, on August 3rd, 2009 at 3:42 pm
[...] Visto en Cult of Mac [...]
Sistema de pago basado en el iPhone - .: iPhonizados :., on August 3rd, 2009 at 3:52 pm
I work at an Apple Retail store. We haven’t heard of getting new POS systems on the iPhone or anything like that. The managers have hinted that hopefully corporate might have something in the works, but nothing really but speculation. I hate the EasyPay systems we use. Bulky, slow, and unreliable. The only thing we use the iPod touches are for checking in Genius Bar appts, One to One’s, Personal Shopping, etc.
Chase, on August 3rd, 2009 at 10:06 pm
[...] is integrating payment system into its phones. PayPal is also plotting an offline expansion. Other, more cumbersome iPhone apps have tried to achieve in-store payments, but required additional additional hardware for the phone [...]
FT.com | Tech Blog | Starbucks app turns iPhone into a wallet, on September 23rd, 2009 at 11:55 am