Comment Re:Swipe? (Score 2) 114
The US card has neither a chip nor contactless capabilities AFAIK - it's a plain old magnetic strip. I would have serious issues actually trying to use that card back home (or in most other countries), as plenty of places simply won't take a swipe anymore.
Chips and contactless cards have been available in the US for a long time. They just aren't universal. I had an Amex Blue card nearly 15 years ago that had a chip in it. And in 2005 they launched a contactless card. Discover also had an oddly shaped card a few years ago that was contactless. I don't think the chipped cards gained acceptance because retailers didn't want to change their readers, and I don't know if Visa or Mastercard ever made any effort to get chipped cards on the market. I wouldn't be surprised if contactless cards aren't widespread simply because they are contactless. I have seen quite a few chains install the contactless readers. But if I have to choose over a reader where I swipe my own card, or a contactless reader where I have no idea what the true range is, I'm going to choose to swipe.
As far as Square's business model, you're focusing on the wrong part of the device. They are about giving small businesses the ability accept and process credit cards. They offer a mag reader because that is the most common device in the market that they are targeting. When they want to enter other markets they will simply create a new device that works through their current protocol. The card reader is a small part of their service, and I don't know why they would be limited to a single technology.