A new credit card reader has been launched by the Square company, which focuses on mobile payments. Anthony Ha reported in an article on VentureBeat on May 11, 2010. Devices such as iPhone and Android can use the new reader now that its applications are live.

The founder of Square is none other than the creator of Twitter, Jack Dorsey. The company has already begun to ship its devices, which can plug in to several popular devices including iPhone, Android, iPod Touch, and iPad.

The device was announced back in December, and now it is available on the market. Those without the reader, however, can also still make use of the application simply by entering in the credit card number.

The application also comes with some other features, which are sure to provide users with a greater usefulness that will be appreciated. It includes email and SMS receipts. Even better, though, is that it provides users with a photo identification, which acts as a security device to ensure no one steals your credit card information or misuses it.

The device itself is the first attempt at providing a card reader for a wide use of products. Customers with the device will no longer need to worry about whether or not the store accepts their credit cards. Of course, this is after merchants come to realize that such a device exists and that it is a viable way to buy merchandise.

According to the SquareUp Website, the device intends to be able to offer people everywhere a way to make purchases, and to be able to do so with confidence. They also explain briefly some of the difficulties that had to be overcome to be able to make such a device work – and what it will take for it to work in the future.

The company is shipping its devices free of charge and is hoping to get a lot of input from its users so that the device can be perfected in the near future for better models. Its goal is to provide a universal device that anyone can use anywhere.

Jack Dorsey and Square have taken on a very large task. Others will certainly want in on the potential profit of such a device. As is mentioned on the Website, others have attempted such a goal. Some have already recognized the value, and a number of venture capitalists have gotten in on the expected profit, including some well known names. When it comes to a possible good investment, this could be a ground floor opportunity. It certainly is worth the watching in the future.

When you consider that banks and other lenders have just suffered a little setback from a recent ruling from Congress that limits how much can be charged per credit card or debit card transaction, it is certain that they will be closely watching such a development. The Congressional Amendment enables retailers to be able to keep a larger portion of the charges, which amounts to many billions of dollars each year. Now, this device may change the picture altogether.

The device is available for free to those who ask for it from the Square Website. Users do not need to have a merchant account, and no monthly contract is necessary for the service. The only charges are a percentage for each credit card swipe. It really can’t get much simpler than that.