Square is mostly known for their small, square credit card reader that plugs into iOS and Android phones and tablets and works with their Square Card Reader and Square Register apps. Square has over 2 million businesses and individuals that use those apps to accept credit card payments.

Now, Square has added loyalty features to the Pay with Square and Square Register app, so that merchants can, such as, give you your 10th latte free or give you 50% off. Merchants can also offer first-time specials. These specials can be seen on the Pay with Square app when you search for or you are within a certain proximity of participating merchants.

This gives Square, which was already a substantial alternative to traditional credit card processors, a further incentive for merchants to use its service. Some merchants may even consider using the Square Register in tandem with their existing traditional credit card processing system, just to take advantage of these features. This also gives customers an excuse to use the Pay with Square app and gives merchants a reason to promote the Pay with Square app. Although the Pay with Square app is intriguing as an alternative to NFC (Near Field Communication) or Bluetooth payment methods like Google Wallet, it hasn’t gained a lot of traction because businesses that accept Pay with Square already accept credit cards, and most consumers habitually use their credit or debit cards. The question that will ultimately decide the long-term success of Pay with Square and any other electronic payment method, like Google Wallet and Apple Passbook, is whether these companies can change the habits of enough customers to where we expect to pay for things using an electronic device in our pocket instead of a piece of plastic, paper or metal.

Source: Square