What do you do after co-founding Twitter, the largest microblogging service on the planet? How about creating a new credit card payment service that can be used on mobile phones. Yup. Jack Dorsey did just that. And her name, is Square.

So how does Square work? As simple as the shape itself, of course. Or, so I hear. Let’s break it down, shall we? First, you have an iPhone (Square services will extend to other mobile phones, but for now, its on iPhone). Next, inserting a neat little credit card swiper (in the shape of a “square”) that conveniently plugs into your iPhone’s audio jack. Then, after that initial set-up (easy, ya?), accepting credit card payments is as easy as swiping -> signing -> emailing receipt -> fin.

With a process so simple, Square is shaping up to become a very powerful credit card payment system. Perfect for Small businesses. Street-food vendors. And even large retail stores. Hmm…Wonder if it will include Paypal compatibility. I can only hope!

Background

In February 2009, Jim McKelvey wasn’t able to sell a piece of his glass art because he couldn’t accept a credit card as payment. Even though a majority of payments has moved to plastic cards, accepting payments from cards is still difficult, requiring long applications, expensive hardware, and an overly complex experience. Square was born a few days later right next to the old San Francisco US Mint.

Today the Square team is focused on bringing immediacy, transparency, and approachability to the world of payments: an inherently social interaction each of us participates in daily. We’re starting with a limited beta and rolling out to everyone in early 2010.

/w00t! I am really looking forward to implementing the Square service for my Dinky Ninja Bears. It’s getting me hype! I don’t know about you, but I can’t wait for the SquareUp service to roll out! If you want to stay up to date like I do, following them on Twitter is always a good idea.

And now, a message from our Internet:

More news on the Interwebs

More Screenshots via Square