T-Mobile USA stores roll out Square payment reader

T-Mobile USA will sell payment solutions startup Square's signature credit card reader at select retail locations, enabling the carrier's small business customers to begin accepting card transactions anywhere and anytime.

T-Mobile is the first U.S. wireless operator to sell the Square reader.

T-Mobile USA will market the Square solution in conjunction with its existing small business plans, aggregated business applications, equipment financing and trade-in services. T-Mobile is the first U.S. wireless operator to sell the Square card reader in its brick-and-mortar stores.

More than a million merchants have embraced the Square reader, which enables users to accept purchases via smartphone or tablet by swiping cards through a small dongle that plugs into the device's audio jack. Square charges a fee of 2.75 percent on each transaction, and it promises users no contracts, monthly fees or hidden costs. In addition to T-Mobile USA stores, Square is sold across more than 9,000 Apple (NASDAQ:AAPL), Best Buy, RadioShack, Target and Walmart retail locations nationwide. Late last year, Square CEO Jack Dorsey revealed the company is processing $11 million in transactions each day, almost triple the $4 million each day quoted in late July.

The growth of Square's business corresponds with the expansion of its mobile payment platform. The firm recently rolled out version 2.2 of its application for Apple's iOS and Google's (NASDAQ:GOOG) Android, evolving beyond payments to introduce loyalty programs that reward customers at the point of sale. Also new in Square 2.2: Merchants may now offer refunds and send receipts for past transactions, customize tip percentage options and search their complete sales history. The Square app for Apple's iPad tablet additionally integrates with the retailer's cash drawer and receipt printer.

Square 2.2 follows on the heels of a revamped version of the startup's Card Case application for iOS, enabling consumers to make purchases and settle tabs without removing their mobile device from their pocket or purse. Card Case leverages location-based service enhancements in Apple's iOS 5 platform update to identify when a user's smartphone is within 100 meters of a participating merchant. Consumers who've opted in to the Card Case service and attached a credit or debit card to their Square account can automatically open a tab with the retailer and pay for the transaction simply by giving their name.

T-Mobile USA and partners Verizon Wireless (NYSE:VZ) and AT&T (NYSE:T) are slated to roll out their own Isis m-commerce network later this year. Beyond Near Field Communications-based contactless payment services, Isis will support retailer loyalty card programs, coupons and offers, and related promotions.

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