Square launched a little over a week ago and was valuated at $40 million. Square was created by Twitter co-founder and Chairman Jack Dorsey. Now Dorsey already has a competitor: VeriFone Holdings, Inc. (NYSE:PAY).
VeriFone is designing a hardware and software solution through the iPhone to accept credit card payments. The solution accepts physical credit cards. VeriFone’s solution will be called Payware Mobile.
“Banks and processors are concerned about the security issues of unapproved merchants using unregulated software and insecure fobs to accept card payments?PAYware Mobile leverages VeriFone?s proven payment and security expertise to provide the ultimate in end-to-end protection against payment fraud and misuse on an open and unregulated platform such as the iPhone,” stated VeriFone CEO Douglas Bergeron.
However VeriFone requires a merchant account. Square doesn’t. Square users already have an advantage because paying for a merchant account every month is not cheap.