On the cards: New payment system launches for smartphone entrepreneurs

San Francisco – Small and independent retailers will be able to easily accept credit card payments with the launch of a new card reader that plugs into a vendor’s mobile handset.

Developed by a team including Twitter cofounder Jack Dorsey, Square, a small device that plugs into a phone’s audio jack, eliminates the long applications and expensive hardware typically implied in implementing a card payment system. To ensure the security of the payment process, buyers may create a photo-based payer account that allows sellers to visually verify their identity. Transactions are completed by ‘signing’ with a finger on the smartphone’s touchscreen. A receipt can then be sent to the buyer by text or email.

With the ease and convenience of the service sure to please small business owners, the device proves that it’s hip to be square.

Read our report on Mobile Money for more on other mobile payment options set to affect the wallet of tomorrow.