Square introduces a new payment tool designed for small businesses looking to quickly switch to e-commerce.
Given that billions of people around the world are forced to stick to lockdown and social detachment measures triggered by the COVID 19 crisis, this has led to a significant increase in the number of people buying things online . It is up to debate whether this trend represents a permanent departure from the status quo or a temporary slip due to protective measures. Given that the entire retail industry is facing significant headwinds for the foreseeable future, this would be the case now if there ever was a time for e-commerce.
With Square Online Checkout, the payment processor wants to benefit from this shift by offering companies an easier way to accept online card payments ̵
It is crucial that Square challenges PayPal more directly in the area of online payments.
How it works
Sellers who are not yet using Square can log in to the online checkout and use the dashboard to create a link for any goods or services for which they want to accept payments – this can be baking cakes or an online fitness course – and providing the link one Title and a corresponding dollar amount.
Via the dashboard, sellers can copy the link and paste it into an email, WhatsApp message, Instagram biography or other location.
Alternatively, you can save the link as a button, adapt it and embed it in any website or blog. The text on this button can be customized so that someone looking for a donation rather than a sale can read “Donate Now” instead.
With online checkout, Square serves all types of shops, regardless of whether a square-based website or another website is desired. An online fitness trainer who temporarily gives courses on Zoom may not feel like building a full online shop. Therefore, such a solution could work well. In terms of fees, Square charges 2.9% + $ 0.30 per transaction.
There are of course many other ways to accept online payments, but Square offers online checkout as a smooth way to accept online payments. For example, the end user does not need to have a PayPal account and the merchant may not even want to offer PayPal anyway.
Comparisons with stripe checkout should also be made here. Square’s incarnation, however, appears to be an easier low-tech option for those who want to accept payments on the fly, similar to PayPal. Except here, the buyer only needs a name, email address and credit card number to complete the transaction.
It’s worth noting that Square Online Checkout also offers Apple Pay and Google Pay as options. However, what you see depends heavily on the browser and device used. For example, iPhone users only see Apple Pay as an option.
While Square may be better known for point-of-sale software and devices that offline merchants can use to easily accept card payments, Square has become more and more popular online in recent years. For example, last year Square partnered with the Postmates courier network to deliver on-demand to more restaurants and retailers. With Square, companies can also set up their own online shop – using Square’s payment tools, of course.
In many ways, Square has taken the opposite path to PayPal, which started as an online payment company before moving to offline payments in the past decade. Square was already well aware of the need to support online retailers, as recent activity shows. The impact of COVID-19 on brick-and-mortar retailers only underscores the need to redouble these efforts.