Square is one of the most successful pioneers in the mobile payment field, known for its easy solutions that transform almost any tablet into a fully-functioning point-of-sale (POS) capable of handling credit card purchases. Now, the company is seeking to extend the possibilities of mobile business even further with a new payroll product that would allow small-to-medium business owners to quickly and easily handle employee salaries, including tax filings and benefit systems. Though the product is not yet available for release, Square is currently testing the platform in California.
The private pilot test charges businesses that are part of the program $10 per employee per month, but the final price will involve doing some balancing work to ensure that Square can expand a business's profit margins enough to justify the cut that Square gets, which must be enough to support the service in the first place.
Square Payroll, as the platform is called, is only the latest in a series of new products that Square has been releasing over the past year, including an invoicing service and a customer feedback product. According to the company's owner Jack Dorsey, Square's goal is to become a single-solution service for mobile businesses that covers all bases.
By covering the total sales process for smaller businesses, Square will be able to offer much more competitive pricing, as currently they are outclassed by Amazon and PayPal (News - Alert) who both charge less on average. However, Square's agility will be able to secure customers loyal business through superior mobile strategies, which could even open up new and more profitable ways to conduct mobile business. If mobile business grows to fill the niche that Square provides for it, the company will be able to quickly outpace its competitors.
Edited by Stefania Viscusi
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