Mobile devices aren't simply for talking, texting, and surfing the Web any longer. Companies like Square are adding the ability to take credit card payments anywhere an Internet connection exists with the use of a simple, plug-in payment reader. Now, provider T-mobile hopes to take advantage of this growing market by offering the Square credit card reader to its small business customers at select locations across the United States.

Pay on the Go

Square, which has seen marked success since its start in 2010, recently announced that founder of Virgin Group Richard Branson invested an undisclosed sum in the company. Branson was quoted as saying, "I'm very passionate about helping people start and grow successful businesses, and Square is an incredible technology that inspires and empowers everyone to be an entrepreneur."

And so far his investment is paying off. Square offers the reader free to any small or midsize business (SMB) and takes 2.75 percent of any transaction to generate profit. The reader doesn't look like much at first glance--a small plastic box, metal jack, and space to slide a credit card through--but it lets SMBs take payment almost anywhere.

Squaring Off With Small Business

In addition to providing small businesses with the reader directly, Square has now partnered with T-Mobile, and according to CNET, will offer the reader "paired" with their current small business mobile plans. The company declined to say exactly what benefit they'll receive from offering Square technology, aside from customer satisfaction, and it should be noted that so far only a small number of T-Mobile stores in New York, California, and some major cities around the United States offer the reader. Still, next-day processing on credit cards along with a business grade mobile phone plan make this an attractive offering, one that has national implications.

Championing Candidate Currency

While using the Square reader locally can net an SMB increases to its customer base, use away from the office--or anywhere in the country--doesn't preclude sales generation. A Los Angeles Times article talks about the use of Square by campaigning presidential candidates Barak Obama and Mitt Romney to help generate donations nationwide. When you have to interact with thousands of supporters present at rallies across the country, technology like the Square reader makes it simple for political candidates to accept secure donations in a matter of seconds.

Zac Moffat, Romney's digital campaign director, says, "The challenge on this sort of thing is never with the technology, it's with the compliance. We're making sure everything we're doing follows fundraising rules and is compliant with the FEC [Federal Election Commission]." Obama's campaign already has a head start on using Square's technology. The president is known for his social media savvy, and he has enough manpower to distribute card readers.

Square's offering makes taking payment from customers on the spot a much less cumbersome process, and the technology itself is free; a moderate per-transaction fee is the only cost. The benefits to business of any size are substantial, but as with any new technology there are caveats: The most important of which in this case is security. Once attached, the reader can take information from any card, and while there are options to require a signature and generate email receipts, the basic ease of use also increases the possibility of fraud. Square has a robust fraud detection system, but no technology is foolproof. Nonetheless, there is no question that solutions like Square's mobile reader are the future of SMB payments that require minimal IT time investment.