Square Inc. is expanding beyond mobile card acceptance with a new service that allows consumers to initiate payments through its application.
The San Francisco-based startup, headed by Twitter Inc. co-founder Jack Dorsey, on May 23 announced the addition of the Card Case feature, which enables customers of Square merchants to pay through an app using credit or debit card information they used earlier with the retailer.
The service works in conjunction with Square Register, another new tool that enables merchants to process card transactions, track cash purchases, generate receipts and conduct other activities using Apple Inc.’s iPad.
“Cash registers and credit card terminals are relics of an expensive, complicated and impersonal commercial transaction system,” Dorsey said in a press release. “With Register and Card Case, we’re transforming everyday transactions between buyers and sellers into something special.”
After using a payment card at a merchant that uses Square Register, consumers may receive a text-message invitation to install Square’s app on their smartphone. Those consumers can use the app to make future purchases from the card they enrolled.
