Twitter co-founder Jack Dorsey might have not yet found the way to monetize Twitter, but he has found a way to transfer money in the physical world using a mobile phone.  Square is, nearly, open for business. Innovative is the other name for him as he has already changed the world with Twitter. The new mobile payment service lets vendors collect cash from credit cards using a mobile phone. It swipes the card’s magnetic strip and the credit card owner is then required to sign for verification using the phone’s touchscreen.

Dorsey demonstrated a Square transaction in a San Francisco coffee house to TechCrunch. The cost of a coffee in San Fran, $4. The ability to pay the vendor directly with your credit card using their mobile phone, priceless.

Square uses a small card scanner which hooks up to a mobile by plugging straight into the audio-in jack. It lets you make physical credit card transaction payments, instantly.  At the moment it works on both the iPhone and Android phones.

What’s more no contracts, monthly fees, or hidden costs. It effortlessly manage all the money you take with an easy and intuitive interface.

As a payer, your receipts can be sent to your email or mobile phone instantly and can be accessed securely online. You can also use a text message to authorize every payment in real-time.

You can create a Square payer account to speed up and secure every payment. With photo verification, Square users can visually confirm you are the card holder.

If you are a regular customer of a shop that accepts Square, the system will automatically notify the vendor about it.

It had an initial funding of 10 million in the time of recession. You can judge from this the amount of faith investors have on Jack Dorsey.