How Square’s New Pay-With-Your-Name System Works
Square has just introduced a new mobile payment system that allows consumers to pay with their names, no wallet needed, with merchants who use the Square card reader and run the startup’s newly updated Square Register for iPad application.Card Case, as the consumer update is called, utilizes a digital “put it on my tab” system and is supported in Square’s just-enhanced mobile application for iPhone and Android.
Beginning Monday, 50 merchants in San Francisco, New York, Los Angeles, Washington, D.C., and St. Louis will start accepting payments by tab. Users can unlock the Card Case and the ability to pay with their names by making their first purchases at a participating merchant.
“Cash registers and credit card terminals are relics of an expensive, complicated and impersonal commercial transaction system,” Square CEO Jack Dorsey says. “With Register and Card Case, we’re transforming everyday transactions between buyers and sellers into something special,” said Dorsey.
Square invited three local merchants to demonstrate the new pay-with-your-name mobile payment system at a press event at the company’s San Francisco headquarters. Mashable got to see Register and Card Case in action. Here’s how the new mobile payment system works for consumers:
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Card Case is not initialized until your first purchase at a Square merchant using the new Square Register application for iPad.
To activate, visit a Square merchant and pay with your credit card. The process will be nearly identical to the previous Square credit card transaction process, except for the final step when you'll be asked to input your mobile phone number. Register will tell you to look for an SMS receipt that will include a link to set up a "Tab" for that merchant and pay with your name in the future.
The SMS message is delivered instantly. It includes a link that directs you to sign into Square or create a new account.
This screen loads in your mobile browser and asks you to create an account or sign in to Square.
This step actives the Square Card Case for your account and sets up your first merchant tab -- using the credit card of your last transaction -- at the venue in question.
On log in, you'll be invited to download the new Square application for Android or iPhone.
If you've already updated the Square application on your phone, clicking "Download the Square App" will load the application and ask you sign in and create a PIN for your Card Case.
Square has introduced an extra security mechanism for consumers. Before you can access your Card Case, you'll need to enter and confirm a four-digit PIN.
This is your Square Card Case. It will include a card for each merchant that you start a tab with.
Click on the "Explore Places" button at the bottom of the Card Case to locate nearby merchants that accept tab payments.
Select a merchant from the Nearby Places list to view its location and full menu.
If you're inside the store, the "Start Tab" button will be clickable. Here it's disabled because I'm not close enough to the merchant's location.
Here I've selected Lilybelle, and because I'm at the merchant's store, I can choose to "Start Tab."
If you start a tab at a merchant, a corresponding card will be saved to your Card Case, and you'll be able to pay with your name on all future visits.
Indicate that you're ready to pay and give your name to the cashier.
Once you click "Ready to Pay" on your iPhone or Android, the merchant will see your name listed on Square Register's point-of-sale screen.
The merchant can select your name to charge the transaction to your tab.
An electronic version of your itemized receipt is saved and attached to your merchant card.
You can view all your past transactions per merchant using Card Case.
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