Farhad Manjoo on the new Square Stand:
Translation: Credit cards will be here for a good long time. This isn’t a novel admission; Dorsey has always said that he doesn’t think plastic will go away anytime soon. But the launch of the Square Stand—a device engineered to improve the credit card experience—shows how deeply Square is betting on credit cards. It’s as if, after building the Model T, Henry Ford also spent a lot of money to build a faster horse, just to hedge his bets. In this way, Square Stand prompts a deeper question: What if, as wonderful as Square Wallet is, we just never move beyond credit cards? What if people find faster horses good enough?
The problem with credit cards is not that they’re not useful. It’s that they break down very easily and are a huge hassle to replace. If you have to get a replacement card, it’s a real pain, especially if you have a number of subscriptions attached to that account. That’s a big part of the reason that, even though I have bruised and faded cards, I live with it. Because replacing it is a bigger hassle.
But there is something to be said about Square’s overall philosophy here. Last weekend I went to a farmer’s market, something that’s long been a cash-only affair at many venues. But there were a number of vendors sporting Square devices—something which goes a huge way towards liberating both consumers, who hate carrying tons of cash, and vendors, who often find themselves on the short end of the stick with payment systems. The result? I only had to pull out cash once. They’ve gone a very long way towards making payments not suck. And that’s pretty awesome.
(Oh, and the other thing? The way they turn receipts into a digital thing is awesome in the age of receipt hell. The last time I went to CVS, I got six coupons. Six. How many trees does CVS waste because they give coupons to people that they’d never actually use? It’s not eco-friendly and it’s consumer-hostile. But if I had them on my phone, I might remember I have ‘em.)
I decided to resign from Square so my colleagues could continue to do great work without the distraction that a lawsuit would most certainly bring. I deeply regret that I let my personal and professional lives to become intertwined, and I apologize to my colleagues and friends (at Square and elsewhere) who I’ve let down, and who will bear the brunt of some of the unnecessary, negative attention this situation will likely bring.Former Square chief operating officer Keith Rabois • Discussing why he chose to resign from the company. To put it simply, Rabois faced a lawsuit over his relationship with a former employee of the company, one who Rabois claims he had a consensual relationship with. With the prospect of a sexual harassment lawsuit claiming otherwise hanging over his head, and also threatening Square’s business, Rabois was clear that he was innocent of the allegations he faced. “While I have certainly made mistakes, this threat feels like a shakedown, and I will defend myself to the full extent of the law,” he said. The company, in a statement, did not find any evidence of misdeeds on the part of the departing executive but admitted his departure was the right move. ”Keith exercised poor judgment that ultimately undermined his ability to remain an effective leader at Square,” a spokesperson said.
In what may prove to be a pivotal breakthrough for the mobile payments space, Square has signed up Starbucks for its platform, a deal that will allow you to use Square to pay for your mocha, yes, but will also make Square the processor of credit and debit card transactions for the coffee shop chain, a move that will significantly expand the Jack Dorsey-backed company’s scale. It’s also a roll of the dice for the brand, too: Starbucks will also invest in Square, and CEO Howard Schultz will join the company’s board. As you guys may know, Starbucks is already leading the way on the point-of-sale front, with mobile apps that store Starbucks cards that can be scanned anywhere. This is one step further. So, who will follow their lead?
Coolest thing you’ll see today: A guy managed to play a reel-to-reel tape through his iPod Touch using a slightly-modified Square credit card reader, which seems obvious if you think about it, but not so much at first. Clever work, bro. (via Hacker News)
It may be too early now to talk about the Law of Unintended Consequences, but years from now, we may owe a debt to reforms like Dodd-Frank for finally weaning us off the physical wallet and encouraging us to experiment with the new technologies helping to create the Digital Wallet.The Washington Post’s Dominic Basulto • Arguing that Dodd-Frank’s side effects — such as Bank of America’s decision to start charging people for the right to use a debit card — will be great in the long run, because it will push consumers and businesses to stop relying on banks for these sorts of services, instead going for phone-based options, provided by companies such as Google or Square, instead. Basuito compares Bank of America’s controversial move to Netflix’s price-raising scheme, and suggests it will hurt them long-term. source (via • follow)
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