If you have an older Square dongle credit card reader, you might be surprised to learn that they lacked the technology to encrypt credit card information. The problem has now been fixed. According to VentureBeat, Square, a mobile payment company, has included circuitry that will encrypt credit card data. This information is turned into audio before being sent to an iOS or Android device and can only be used by the official Square app. Another addition to the new Square dongle is a small battery.
Competitors had been using the lack of encryption to pull customers away from Square. Verifone even set up a webpage describing the problems that could occur with Squares card reader. It also created an app that showed how simple it could be to steal someones information with the reader. PayPal also launched a reader that has hardware encryption. Now that Squares dongle is encrypted, it should have little to fear from its competition.