Square is one of the most innovative companies in the world, but understanding precisely what it does can be a challenge. At root, Square is a payment processing company. It allows anyone (but particularly small businesses) process card payments on the fly, allowing them to take alternative payments to cash, no matter where they are. A solo entrepreneur in the middle of nowhere with an iPhone can take plastic all through the Square app. 

What makes Square so enticing for entrepreneurs is the pricing structure. Most card payment processing companies insist on charging per transaction, meaning that merchants have to pay a fee every time they want to carry out a transaction. Square, however, gives small and micro-scale businesses an alternative: to pay a flat fee for sales up to $250,000 per year. The flat fee dramatically cuts the cost of transacting, especially for businesses which can get about the $50,000 per year mark. 

Square, therefore, is moving powerfully into the entrepreneurial and micro-enterprise space. It’s providing options for small-scale entrepreneurs to take card payments when they couldn’t before, either because of cost or a lack of convenience. Being able to accept payments through a smartphone means that practically anyone, anywhere can become a merchant and begin trading. 

The following infographic charts the success of Square and shows how its payment processing technology is helping small businesses like yours. The costs are minimal and the benefits enormous: companies no longer have to rely on their customers carrying around wads of cash with them. It’s payment on demand. 

Infographic by University of Alabama Birmingham