Square, the mobile payments startup, is finally getting onboard with mobile payments. After originally announcing their new reader back in June, they are finally starting to ship the device to retailers. The new reader not only brings support for chip-enabled cards (which have just started to become commonplace in the United States), it also brings support for Android Pay, Samsung Pay, and Apple Pay.
The reason chip cards have just started to be available for US customers is due to the liability shift that occurred on October 1st of this year. If retailers have not enabled support for chip-powered cards and are found to be at fault for a data breach that could have been prevented with chip support, the liability falls to them.
While you may have gotten a chip-powered credit card if you were going overseas, the reason it’s just now becoming available domestically is because of large-scale hacks in recent years such as Target or Home Depot. The United States is the last country to get support for chip cards, which you probably have been receiving this year from your bank or credit union.
Of course, chip cards require you to insert your chip into a slot, and the processing time is a lot slower than the previous swiping technology. Mobile payments are a lot quicker and contain many of the same security features, such as tokenization, so Square is also bundling this into their new reader, as a new security feature and convenience for retailers and customers.
Square has teamed up with 100 businesses initially, but anyone can get a new Reader from their website, if they are a Square customer. While it only says Apple Pay on their website, any NFC-powered payment system should work, such as the upcoming LG payment system. Samsung Pay is also supported, because it uses both NFC and MST, which transmits the same swiping magnetic technology that previous readers had support for. No matter what system you’re using, mobile payments should work.
Via: Droid Life