Late Wednesday evening, Twitter chief and Square co-founder Jack Dorsey boasted a truly tweet-worthy accomplishment out to the masses:
“As of today @Square is processing more than $1,000,000 a day. Think of all the individuals & businesses behind that number. Congrats to all!”
Having launched less than two years ago, mobile payments firm Square has exploded both in popularity and usage, despite the reluctance of some to deploy the awkward little credit card readers atop their nearest iPhone.
Still, the ability of Square to gain such traction also speaks to Square’s surging profitability.
Netting 2.75% commission on $1,000,000 worth of daily transactions means Square is taking home $27,500 in revenue each and every day.
Until just recently, however, the San Francisco-based company had also charged a flat 15-cent fee for each payment. Now, Square simply charges it 2.75% commission.
By abandoning the small but still consequential 15-cent fee, Square is setting itself up for continued growth and acceptance within an industry that is being bombarded by a wealth of companies similarly introducing their own mobile payments systems.
According to projections by myriad analysts, mobile payments are widely expected to approach $1 trillion by 2015.