When the mobile payment service Square launched in December, VeriFone rushed to get its own version on the market. A couple weeks ago, they accomplished that with the launch of PayWARE Mobile. Now they’re looking to take out their competitor the good old fashioned way: out-spending them.
VeriFone is already heavily advertising its PayWARE Mobile product with huge ads in New York City taxis. As you can see in the picture, VeriFone is paying for big screen real estate on the screens that are in the backseats of all cabs in the city now. The ad shows a large picture of the device (a piece of hardware that you attach to your iPhone) and promises users that not only will they be able to accept payments with the iPhone with it, but that they will “never miss a sale.”
Obviously, this is the same thing Square does, but Square is a startup (co-founded by Twitter creator Jack Dorsey), whereas VeriFone is a large global company already making a ton of money in electronic payments. That said, Square has some money too, thanks to its $10 million round of funding, and $40 million valuation before it even launched. But it seems highly unlikely that Square would use any of its funding to counter these ads.
Instead, Square is going to have to keep touting the fact that their system is built for anyone to use, whereas VeriFone’s requires that you have a merchant account.