New Payment Methods a Work in Progress

Test runs of new EMV- and Apple Pay-enabled Square reader illustrate a learning curve for consumers and merchants.

June 25, 2015

NEW YORK – Payment company Square announced its new credit-card reader at Apple’s Worldwide Developer Conference earlier this month, showing off the device’s ability to accept payment by EMV-enabled credit and debit cards, as well as Apple Pay.

But, as Wired reports, “real world” tests of the reader revealed a few hiccups when users tried to pay with their iPhones or Apple Watches using Apple Pay. Many of the glitches were simply due to a lack of familiarity by both users and retail associates. For example, some Apple Watch users touched their wrists to the reader with their device facing up, before realizing that the Watch doesn’t send a payment unless it’s facing down. Others weren’t certain that their payment had actually gone through, even when a transaction was conducted seamlessly.

According to Wired, while the examples given represent only a very small test sample, they nevertheless “provide a nice metaphor for contactless mobile payments as a whole. Apple Pay and its ilk will take some getting used to.” In fact, writes Wired, many question whether such services are any more desirable than physical credit and debit cards in the first place.

But regardless of where one stands on the necessity of these new payment options, there’s no question that change is coming to the payments landscape and Square is right in the middle of it. Launched in 2009 by Twitter co-founder Jack Dorsey, it began as a company that let small merchants readily accept payments with traditional mag stripe credit cards, plugging a tiny card reader into Internet-connected smartphones and tablets. But as the credit card evolves, Square – and other payment services — is evolving with it. And perhaps even faster than the cards themselves: The newly announced card reader won’t even accept traditional mag stripe cards.

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