The company began testing its system with a small number of merchants in December, and had intended to host a general launch earlier this year. However the rollout was stymied by hardware delays and merchant complaints about Square’s draconian anti-fraud system.
Hardware issues were resolved relatively quickly after McKelvey went to China to straighten out manufacturing. However to fix the anti-fraud system, which placed limits on merchant transactions, and handle massive demand, Square needs to restructure it’s whole underwriting system to mitigate risk.
“This is the last thing preventing us from shipping readers as fast as we’d like, and we have pretty much the entire team working on it,” Dorsey wrote in an email to Square users back in June.
When it finally launches, Square promises to be a very slick system, but nobody loves vaporware. And since the Square software app is currently available, but the hardware card reader is not, comments on the iOS and Android app stores indicate that customers are quickly losing confidence.