A complete take over — and a true overhaul — of the local point-of-sale market. How much is it worth? Nobody can tell for sure. To give some examples, according to IBISWorld the grocery store market alone is worth an estimated $491 billion annually and convenience stores are a $51 billion market (a subscription is needed to view these reports). As Jason Calacanis wrote recently, if iPhones accounted for one percent of restaurant sales, that would be $6 billion of the $604 billion spent in 2011.
I graduated college almost 10 years ago. During the end of my tenure, I was using my credit card to pay for most things. This was partially because I didn’t always have the money to buy things1, but it continued after college as simply a convenience thing. My credit card is always on me, and cash, or enough cash, isn’t always.
When the cafeteria in the building I worked in finally started excepting credit cards, I got some grief from a co-worker for paying for my $5 lunch with a credit card. Now most of the people in the cafeteria use credit cards.
I don’t think Apple would buy Square because this stuff has to catch on first. We tech geeks forget that most people aren’t ready to pay with their phones and a lot of business owners won’t be ready to take this plunge. Apple may address this at some point, but my guess is that they will do it their own way.
(via Ben Brooks)
- I didn’t exit college with significant credit card debt though [↩]