VeriFone posted a demonstration video and sample skimming app to its web site. In April 2012, rival payment company Verifone claimed that the Square system at the time was insecure and that a reasonably skilled programmer could write a replacement app which could use the Square device to skim a credit card and return its details, because of the lack of encryption. The original version consisted of a simple read head directly wired to a 3.5 mm audio jack, through which unencrypted, analog card information was fed to smartphones for amplification and digitization. It accepts credit card payments by connecting to a mobile device's audio jack.

The Square Reader was the firm's first product. In 2010, the Square device communicated with the Square app through the phone's audio jack. Jay-Z, as well as other artists who currently own stock in Tidal will remain stakeholders. Square will pay $297 million in cash and stock for Tidal, with Jay-Z joining the company's board of directors. On March 2, 2021, Square reached an agreement to acquire majority ownership in Tidal. The company purchased an additional $170 million worth of bitcoin in February 2021, bringing Square's total holdings to almost $500 million in Bitcoin. In October 2020, Square put approximately 1% of their total assets ($50 million) in Bitcoin, now worth over $220 million, citing Bitcoin's 'potential to be a more ubiquitous currency in the future' as their main reasoning. The name 'Square' derives from the company's square-shaped card readers. Ĭo-founders Dorsey-who also co-founded Twitter-and McKelvey began developing the company out of a small office in St. The original inspiration for Square occurred to Jack Dorsey in 2009 when Jim McKelvey (a friend of Dorsey) was unable to complete a $2,000 sale of his glass faucets and fittings because he could not accept credit cards.

Square payment system