One of the most common iPhone 5 rumours is about NFC – the near field technology that allows mobile payments. Jack Dorsey, the founder of Twitter, may have caught a big fish – Square, the mobile payments company also lead by him, which has now officially been placed on the Apple Store (opens in new tab).
Square (opens in new tab) seems to be a pretty comfortable way to perform mobile payments. The device that one uses to perform the card credit swipe is a small square-shaped object that can be attached to an iPhone, iPad or other smart device to perform the transaction. This throws into doubt whether the iPhone 5 will come with NFC technology after all.
It can be acquired on the US Apple Store for $9.95, but, if you sign up, you get $10 credit, so you basically get it for free. Although the application is free, there is a 2.75% commission for each credit card swipe.
Apple’s move is interesting, as this could mean that they are open to an eventual partnership, even if they have patented their own contactless mobile payment technology. An eventual partnership with Square could save Apple a lot of headaches, as they will not have the extra burden for the upcoming iPhone 5, and will be able to focus on other parts.
After all, Square has proven to be a viable and successful business, developed by one of the most brilliant web entrepreneurs.