Facing competition in the mobile payment space from PayPal, Square, the mobile payment start-up has introduced a new feature, a digital loyalty card, to help establish itself as an indispensable financial mobile buddy to consumers.
Square recently updated its Square Register app (iPad) that replaces cash registers for small business merchants. Simultaneously, it updated its Pay With Square app (iOS and Android), which allows merchants to reward regular customers by applying discounts automatically when they return to the place of business or by giving them points on a digital punch card each time they purchase something that can be applied toward a free or discounted reward.
In an interview, Square’s chief operating office, Keith Rabois, said, “Those punch cards that you get and stick on your refrigerator and leave behind? On your phone you have one for every merchant you visit.” Square’s digital version of the punch card is much more convenient than a wallet with a bunch of paper cards.
As Square aims to stem off competition from PayPal in mobile payment space, the company is still fighting the perception of mobile payments in the mind of the market. Adoption to mobile payment has been slow due to security or other concerns.
This latest offering by Square is another step in the transformation of the consumer’s wallet into a digital wallet that makes the task of purchasing simpler. It remains to be seen if Square’s Digital Loyalty App and Square itself gets punched by millions.
Sources: NYTimes.com and TechCrunch.com