Square Launches Credit Card iPhone Peripheral

Retailers will now be able to receive payments by swiping customers' credit cards on their iPhones, iPod Touches, iPads and Android-based smartphones.

It's all thanks to Square, the San Francisco-based start-up founded by Twitter co-founder Jack Dorsey.

Revealed by Dorsey in December 2009, Square allows businesses to accept credit payments for services rendered by swiping the card using a device attached to the audio port of the smartphone.

The Square card reader will be delivered free of charge to those who sign up for an account on the Square website.

In a letter addressed to customers, Jack Dorsey wrote: “Square intends to bring immediacy, transparency, and approachability to the financial world. We want to enable all people to accept payments instantly, with access to all the information they need, in a way that feels amazing and engaging.”

Square will allow users to sign bills using their fingers on the screen of the mobile device, and the transfer of funds will take no more than two business days.