Square has enjoyed a pretty long run as the de facto platform for individuals and small businesses to accept plastic with absolutely no friction. But as the company grows and grows, we all know that it’s only a matter of time before new startups come out of the woodwork to try to take it down. Enter Coin, a brand new mobile credit card acceptance platform that promises a lower processing fee than Square.
To accept a debit or credit card through Coin will cost the merchant 2.55%, which is 20-basis points lower than Square. Of course, this is kind of like people who gripe about seeing a gas station with $0.02/gallon cheaper gas after they fill up – in practical terms, you aren’t going to see a change. But people like knowing they got the best deal possible even if it has no impact at all on their life.
Oh, and yes, the decision to name the company after an object that is very much non-Square was intentional. Just check out this snippet from Coin’s website – “So you can see, we actually thought a lot about how to build a better device rather than copy everyone else’s. Then we remembered something simple: The world is round, not square.” Coin also offers a linked debit card so you have immediate access to your funds. Let the mobile payment wars begin.