With the future of commerce and transactions heading towards mobile, Ebay has been aggressive in its expansion in recent times with their vision of mcommerce and the release of their card reader "PayPal Here", which was remarkably similar to a similar product to rival company Square (pictured above). Yet despite this and the $7 million of mobile payment PayPal is expected to do this year, Square is still going strong and steady after it announced an increase in payment volume in the past month.
Bloomberg is reporting that Square, who specialise in credit-card readers for smartphones and tablets, has increased its payment volume by 25 per cent since March, the same time Paypal revealed its own credit-card reader. The company is processing transactions at an annualised rate of $5 billion, up from $4 billion a month ago with more consumers embracing mobile payments. Exactly how much Square is making from this and whether it's earning enough to grow is unclear as the company doesn't release its financial results or reveals whether it's profitable or not, but the signs for them are positive.
The company also announced that it will guarantee that any payments processed by 5pm will get deposited into a merchant's bank account by the morning of the next business day. Originally, fast deposits was one of Square's main selling points but PayPal Here is now promoting the fact that businesses will get access to their funds on the same day, provided said funds are deposited into a PayPal account and then withdrawn using a PayPal debit card. Usually, similar transactions would take anything between two to five days to process
According to the company, more than one million businesses are using Square to accept credit cards. This is in comparison to the 200,000 merchants who have signed up for PayPal Here who are enticing merchants with a 2.7 per cent transaction charge, less than Square's 2.75 per cent. Square is also reportedly trying to raise $250 million at a valuation of $4 billion.