Jun
21
Millions of small businesses and individuals have turned to Square technology to accept credit cards, giving customers more payment options. However, as many Americans become more interested in the convenience of electronic wallets, some retailers fear that credit cards will be phased out.
In an effort to encourage consumers to continue using credit cards, Square has created an application that offers loyalty rewards to customers. The app enhances the capabilities of the iPad application Register and is also compatible with Square’s digital wallet, Pay with Square, according to American Banker. The program enables retailers to offer incentives to consumers, ranging from discounts to rewards for spending.
In addition, the app generates reports on sales trends.
“What Square is trying to do is deepen relationships with its merchant community,” Zil Bareisis, Celent research firm senior analyst, told American Banker in an email. “That’s the main purpose of the Register app as well as the new loyalty features.”
While many consumers have turned to Square due to its simplicity and low cost, competitors who offer similar technology have gained an edge over the company by offering additional features and rewards. Square has attempted to both regain its edge against competitors with the new application and provide more benefits to consumers and retailers.
Many analysts have asserted that incentives and rewards play a significant role in Americans’ decision to use certain payment methods. Industry experts agree that a lack of incentives is one of the reasons adoption of new mobile technology has been slow and consumers have remained committed to credit cards. However, some consumer researchers say that if mobile payment developers provide rewards for use and take steps to allay Americans’ safety concerns, adoption of new technology will speed up.