• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechThe Mobile Executive

How Apple’s Headphone Jack Change Could Affect Square

By
Leena Rao
Leena Rao
Down Arrow Button Icon
By
Leena Rao
Leena Rao
Down Arrow Button Icon
September 8, 2016, 10:57 AM ET
Twitter Co-Founder Jack Dorsey
Square, a credit card reader made for smartphones, is arranged for a photograph in New York, U.S., on Monday, Oct. 25, 2010. Square Inc.'s mobile-payment technology allows smartphone users to make credit card payments and the availability of funding for new ventures. Photographer: Jin Lee/Bloomberg via Getty ImagesPhotograph by Jin Lee — Bloomberg via Getty Images

Millions of merchants and consumers have become accustomed to the now-iconic white Square dongle for processing payments on-the-go via smartphones and tablets—arguably thanks to the rise of the iPhone as well.

But all that could change after Apple announced on Wednesday what it deemed as a “courageous” move to remove the headphone jack on the next generation of the iPhone.

In 2009, the then-startup helmed by Jack Dorsey debuted a sleek and shiny white credit-card reader that plugs into a mobile device’s headphone jack, enabling anyone with a supported iOS or Android device to accept credit card payments. Square was one of the first to facilitate credit card payments this way, and others quickly followed. PayPal (PYPL), for example, debuted a rival card reader, called PayPal Here. A startup in Europe, called iZettle, also offers a credit card reader.

But now that new versions of the iPhone won’t have a headphone jack, how will that affect Square and these other payment processors?

Not much, actually. Included in every iPhone 7 purchase will be an adapter that can be inserted into the Lightning port, a connectivity option previously reserved for charging and syncing data. With the iPhone 7 and iPhone 7 Pro, owners will be able to use this connectivity port (with the adapter) to plug in anything that would plug into a standard headphone jack. Square users could simply use that dongle for the foreseeable future.

For more: All the News You Need to Know From Apple’s Big Event

Square (SQ) has also expanded its payment processing methods beyond just the tiny white dongle for the headphone jack. The San Francisco-based company also hawks an iPad register, called Square Stand, which costs $99 and doesn’t use the headphone jack. In 2015, Square debuted a new contactless method, which lets consumers use both Apple’s contactless mobile payments technology, Apple Pay, and Google’s payments technology, Android Pay (GOOG). That new reader was also integrated for chip-enabled cards. Instead of using the headphone jack, this reader uses Bluetooth technology to connect a merchant’s phone with the credit card reader.

In response to Fortune‘s question about the headphone jack, a spokesperson for Square issued this response: “In addition to headphone jack adapters that will work with Square’s magnetic stripe reader, our new contactless and chip reader pairs wirelessly for a smart, safe, and fast experience—no headphone jack is necessary. Local business owners have ordered more than half a million readers, making it easy for their customers to pay with their cards or phones from Santa Fe to St. Louis.”

Get Data Sheet, Fortune’s technology newsletter.

Dorsey’s comments during a recent earnings call indicate perhaps Square has been prepared for the potential for the jack to be killed off by Apple.

“We want to make sure that they’re always a step ahead of everything that might change or will change in the future,” Dorsey said at the time in response to a seller question. “So one of the reasons we’re super excited about our contactless and chip card reader is that it works over Bluetooth. And that means it works with more and more devices and can work with more and more devices in the future. This is an open standard that every company is behind and something that gives our sellers the confidence that no matter how the technology shifts, they’re still always be able to make the sale.”

Fortune has contacted PayPal for comment as well.

About the Author
By Leena Rao
See full bioRight Arrow Button Icon

Latest in Tech

robots
InnovationRobots
‘The question is really just how long it will take’: Over 2,000 gather at Humanoids Summit to meet the robots who may take their jobs someday
By Matt O'Brien and The Associated PressDecember 12, 2025
4 hours ago
Man about to go into police vehicle
CryptoCryptocurrency
Judge tells notorious crypto scammer ‘you have been bitten by the crypto bug’ in handing down 15 year sentence 
By Carlos GarciaDecember 12, 2025
5 hours ago
three men in suits, one gesturing
AIBrainstorm AI
The fastest athletes in the world can botch a baton pass if trust isn’t there—and the same is true of AI, Blackbaud exec says
By Amanda GerutDecember 12, 2025
5 hours ago
Brainstorm AI panel
AIBrainstorm AI
Creative workers won’t be replaced by AI—but their roles will change to become ‘directors’ managing AI agents, executives say
By Beatrice NolanDecember 12, 2025
5 hours ago
Fei-Fei Li, the "Godmother of AI," says she values AI skills more than college degrees when hiring software engineers for her tech startup.
AITech
‘Godmother of AI’ says degrees are less important in hiring than how quickly you can ‘superpower yourself’ with new tools
By Nino PaoliDecember 12, 2025
8 hours ago
C-SuiteFortune 500 Power Moves
Fortune 500 Power Moves: Which executives gained and lost power this week
By Fortune EditorsDecember 12, 2025
8 hours ago

Most Popular

placeholder alt text
Economy
Tariffs are taxes and they were used to finance the federal government until the 1913 income tax. A top economist breaks it down
By Kent JonesDecember 12, 2025
13 hours ago
placeholder alt text
Success
At 18, doctors gave him three hours to live. He played video games from his hospital bed—and now, he’s built a $10 million-a-year video game studio
By Preston ForeDecember 10, 2025
3 days ago
placeholder alt text
Success
Palantir cofounder calls elite college undergrads a ‘loser generation’ as data reveals rise in students seeking support for disabilities, like ADHD
By Preston ForeDecember 11, 2025
1 day ago
placeholder alt text
Arts & Entertainment
'We're not just going to want to be fed AI slop for 16 hours a day': Analyst sees Disney/OpenAI deal as a dividing line in entertainment history
By Nick LichtenbergDecember 11, 2025
1 day ago
placeholder alt text
Success
40% of Stanford undergrads receive disability accommodations—but it’s become a college-wide phenomenon as Gen Z try to succeed in the current climate
By Preston ForeDecember 12, 2025
9 hours ago
placeholder alt text
Uncategorized
Transforming customer support through intelligent AI operations
By Lauren ChomiukNovember 26, 2025
16 days ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.