1. Hardware for the software
Mobile devices now have much higher processing power and everyone is carrying a computer in the pocket. Apps for these devices no longer have to be limited to entertainment and enjoyment, and can now do actual work.Square seized this opportunity and created an app aimed at merchants instead of the standard consumer. Furthermore, they included the card reader which does not cost much. It uses an input port which is available on all devices, the 3.5mm headphone jack. I found the use of sound waves ingenious, as it uses a technology for some purpose which it was not intended for. People who want to use the Square's card reader will have to use their app, and vice versa, if they want to use the app they will have to use the hardware.
2. Simplified UI
Square's app has a super simplified and minimalistic design. The buttons are big and purposeful, there is little or no clutter and the app looks incredibly plain. In fact, the app does not draw attention or interest, unlike other apps such as pinterest or instagram, with their flash animations and pictures everywhere. However, I feel that this is appropriate as the app is aimed at merchants. They would most probably want the app to be simple to use, with functions where they expect it to be. The app was made with functionality in mind and it really works.3. Fast and easy
If you want to do something, somebody else has already done it. People are also impatient and want to push their ideas and creations as quickly as possible. Square is able to provide the users with the service four times as fast as traditional banks or service providers. People who are impatient or require the service fast would be attracted to square instead of bigger providers. Smaller and independent merchants would also be less intimidated to try something like square in their company, rather than going for a full fledged point of sales system.
I think that Square would have to expand their company if they were to survive. The whole company is focused on one particular hardware and companion app. Competitors would very quickly catch onto this. Furthermore, larger companies and banks would have a much larger user base. All they need to do is to create a good app and their users can be migrated.
I was really impressed when I first found out how and why Square made their readers work through a 3.5mm headphone jack. While they could have easily made use of the well-documented 30-pin or lightning connector that every iOS device has, Square chose the unconventional way -- a choice that has led to numerous benifits. Firstly, developers who want to make use of the lightning and 30-pin connectors have to pay to join Apple's MFi program to license and certify their product. By using the audio jack, Square does not have to certify their device for use with Apple. In addition, the cost of manufacturing the device can be reduced. Also, had Square went with the easy way, pushing out support to Android hardware (something they recently did) would prove difficult as there would need to be a separate hardware for non iOS devices.
ReplyDeleteOh I didnt know Apple had a licensing programme for that as well. Yea I was thinking along the lines that every mobile phone would have an audio jack. It is probably the most universal port on mobile devices right.
DeleteAnd you never know when Apple decides to change their connectors, like they did when they made the switch from the 30-pin connector to lightning connector! I'm guessing the 3.5mm audio jack will continue to stay the same for years to come.
DeleteIf they were to expand their company, Square would need to take care of much more complex issues. Exchange rate is one such issue. Credit cards nowadays are notorious for their very unfavourable exchange rate. That's something Square has to be careful not to fall into.
ReplyDeleteAnother issue would be capital control, presumably if they want to deal with the China market. Not all currencies are free floating, and they would not be able to do business if they don't have the ability to convert its currencies freely.
Just my 2 cents on expansion.
Yea I guess this is where other issues come into play. Being mainly a software developer myself, issues such as these would be overlooked. I guess creating an app and hardware as Square did would have been the easy part. Gathering users and making them happy is a whole other thing entirely. This has always been an interesting issue for me, probably why I decided to take cs3216 too!
DeleteThe competition is really fierce in the payment industry. I think the reason behind it is its huge potential scalability, like after you establish the customer account, all you need to do is to collect money.
ReplyDeleteI think the current way of marketing is more of a "one-size-fits-all", they should provide consulting for potential clients and provide them with some expert advice for the retail stores. It is important to expand their sales force and align the interest of the business with theirs (I.e: if they provide good advice to SMEs, like helping them set up events, the business improves and they get more $$ from the transactions.)
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