As if having an easy and convenient way to take credit card payments on the go for small businesses isn’t good enough, it gets even better. Square, the company spearheading the mobile merchant movement, is now dropping its per transaction fee making its rates the lowest in the industry for small merchants who typically do less than $1000 a month in business. This move will cost Square in revenue, but the company believes it should boost their volume.
The mobile payments industry is getting competitive and many traditional merchant and financial services companies, such as Intuit—father of Quickbooks—are getting in on the game. Considering that a majority of small businesses already use software packages like Quickbooks for their bookkeeping, they are more likely to stick with Intuit even when they move towards mobile payments.
Square’s decision to drop their 15-cent per transaction fee to just the flat 2.75 percent fee per transaction may help the company up their market share. However, if competitors follow suit, it will be interesting to see what other areas of differentiation can emerge. All this is great news for small businesses.
[via All Things Digital]