Although the Square application has received a great deal of recognition and popularity throughout the few years that it has been out, there are other companies that have come out with a concept similar to the Square application.
An example of this is Intuit’s GoPayment credit card reader, which provides its customer with the same benefits as Square because it allows its users to get paid while on the go. However, according to The Business Insider, “there’s no credit check or sign up fee with Square, but you still have to pay 2.75% plus $0.15 for each transaction. On the other hand, Intuit’s GoPayment requires a credit check, but you get a slightly better rate at 2.7% plus $0.15”.
Another application that’s similar to Square is GoPago, which is also based in San Francisco, CA, and bankrolled by JP Morgan Chase. Unlike Square, GoPago does not give its merchants a card reader and software. It gives them a free Android tablet and Verizon 4G wireless data to be used solely for GoPago purposes. One main disadvantage that GoPago has is that it charges .10 percent more than Square. GoPago charges 2.85% per transaction while Square charges 2.75%. The slight advantage that GoPago has over Square is that it allows you to place a takeout order in advance when using its application.
According to a CNN Money article, “The Company says it is currently processing transactions at an annualized rate of $6 billion, up from just $2 billion late last year. It has grown from 80 employees to over 300 in the past year… But Square is also under attack from a growing number of deep-pocketed competitors. In recent months, eBay's (EBAY) PayPal unit introduced a competing card reader for mobile devices as well as a set of apps that mimic the functionality of Square's apps. VeriFone, the giant maker of point of sale terminals, followed suit with its own card reader and a new business unit that is going after the same kind of mom-and-pop merchants that have been Square's core market. And others, like Groupon (GRPN) and Google, are said to be close to introducing products that will directly compete with Square's”.
All in all, as more technological advances come into place the Square application will face more competition, but as of right now Square is one of the most well-known card readers out right now.