Square small business payments service launches in UK

Square uses small, mobile card readers which connect to a smartphone or tablet. Credit: PA

Square, the payment service created by the boss of Twitter, which enables small businesses to take card and contactless payments, has launched in the UK.

The service uses small, mobile card readers which connect to a smartphone or tablet to enable independent traders to accept other forms of payment apart from cash.

Square is already used in the US, but will now compete with similar smart reader payment systems in the UK.

Square also includes point-of-sale software which allows trader to gather sales data as well as digital receipts and invoices with an app.

Chief executive Jack Dorsey said the aim of the service was to enable more small businesses owners to take advantage of better payment technology.

He added: "I think the thing that we're focused on first and foremost is the people who have not accepted credit cards in the past but I do imagine there is a huge opportunity for us to switch over a lot of folks away from what they're currently using."

Business owners will pay a flat transaction fee of 1.75% for all in-person payments and receive the money the day after the transaction takes place.

Square is already used in the US. Credit: PA

Commenting on the effect of Brexit on the UK economy, Mr Dorsey said the "strength of the small business market" was common throughout the world and Brexit vote would not change that for the UK.

"Betting on small businesses is always the right bet no matter what's happening around them because they are the fabric of the community and the only way that any business can become large and more global.

"So we don't worry about that at all because we knew that no matter what was happening in government that there would always be an appreciation of the role of small businesses and how important it was to support them and how important it was to help them grow as well."

Mr Dorsey added that he expected the use of mobile payments on smartphones and other devices to continue to increase.

"I just think it's so much faster, its so much more convenient and the more and more we can help move it to a device like the phone or the watch, the better," he said.

"It helps the seller, but its just more delightful for the buyer - they don't have to manage a lot of paper or take out their card.

"They're already on their phone, probably checking a bunch of stuff and just being able to tap and go very, very quickly is exactly what we want payments to feel like."