Market Overview

Square will distribute readers with encryption this summer


Mobile payment service Square announced at the Visa Security Summit on Wednesday that they will distribute new credit card readers with encryption for better security. The readers are expected to ship this summer and will be free for users.

Last month, competitor VeriFone called out Square by stating that their credit card readers pose a great security risk because they transmit data to devices without encryption. Later Square CEO Jack Dorsey responded by saying that the accusations are unfair because you must have a physical card to use the reader, all the information the reader takes is on the front of the card for all to see. It now looks like Square has realized their mistake and plans to distribute new readers with encryption to protect customers card information from other apps.

The new version of the reader will actually be the second redesign of it little dongle. Square did not comment on whether all merchants will have to changed readers, which may be frustrating if the previous designs are made useless.

This news came on the same day that it was announced that Square had received a large investment from credit service Visa Inc. Visa reportedly made a large enough investment that a Visa executive will get a seat on the advisory board of Square.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


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