The most exciting thing about Square is not just that it is a credit card processing service that practically everybody with an iPhone, iPad or Android device can use. Nor that it is a big hit with flea markets, taxis and other merchants in the US who are generating $2 billion worth of transactions per year via an installed user base of 800,000.
The most exciting point is that Square is a company who is rethinking payment systems from a software point of view. The first tentative step in this direction is the new loyalty concept for customer retention. Merchants can automatically recognize regular customers and set up special offers for them. As described on the Digits blog from the WSJ:
"Square is launching Square 2.2 for iPad, iPhone or Android phones, allowing merchants using the technology to now offer rewards to customers that make repeat purchases. The merchant can determine what constitutes a “regular” customer – whether it’s ten purchases or more, for example – and issue a deal or reward at the point of purchase."
Following this train of thought, there are further connections possible both offline and online which Square could implement in the future:
- Connections to Twitter, Facebook or Klout: Multipliers get special offers.
- Identification of groups at the point of sale for group sales campaigns.
- Connections to live-shopping style offerings.
Fundamentally, Square can act as an interface between the web and the non-internet based retailer. Even a connection between Groupon Now! and Square could be easily imagined.
Related posts:
- Groupon Now! and the Mobile Future
- Groupon Rewards To Convert Bargain Hunters to Repeat Customers
- Groupon App Helps Merchants With Groupon Redemption
Originally posted in German by Marcel Weiss, adapted for excitingcommerce.com by Jason Soo.
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