Square NFC payment reader available in US Apple stores for $49, compatible with chip-enabled cards, Apple Pay, Android Pay, and Samsung Pay
Square is selling its NFC payment reader in Apple Stores — Last November, Square finally got on with the times and unveiled an NFC-friendly reader …
Context & Ripple Effects
Square teased an Apple Pay-ready NFC reader back in June 2015, started shipping it with Apple Pay and Samsung Pay support in November, and is now putting it on Apple Store shelves at $49. The move follows a template set by rival PayAnywhere, whose reader went on sale in Apple Stores after adding Apple Pay support last August.
The distribution deal matters because Apple Stores give Square a physical retail channel aimed squarely at the same small merchants its dongle business serves — and the reader's multi-wallet compatibility means it accepts Android Pay and Samsung Pay too, not just Apple's own wallet.
First-order effects
- Small US merchants can now buy contactless acceptance off the shelf at Apple Stores for $49, making tap-to-pay viable for sellers who previously only had Square's magstripe dongle.
- Apple gains a first-party-adjacent payments accessory in-store that showcases Apple Pay at the point of purchase, while Square gets foot traffic and credibility from Apple's retail brand.
Second-order effects
- PayAnywhere, already selling through Apple Stores with a 300K-location footprint, now faces direct shelf competition from Square's cheaper multi-wallet reader in the same channel.
- By supporting Android Pay and Samsung Pay alongside Apple Pay, Square pressures other reader makers to match multi-wallet compatibility or cede the small-merchant segment.
Third-order effects
- Cheap, widely distributed NFC readers push contactless acceptance toward becoming the default for US small businesses, setting up Square's later moves from dongle to integrated hardware like Terminal and eventually software-only Tap to Pay on iPhone.
- If wallet providers keep subsidizing acceptance hardware, the reader itself commoditizes and competition shifts to who owns the merchant's software relationship and transaction flow.
The trend: Mobile wallets are driving NFC acceptance down-market by pairing cheap readers with mainstream retail distribution, turning payment hardware into a customer-acquisition funnel for merchant software platforms.