Twitter co-founder launches mobile payment firm

One of the co-founders of micro-blogging site Twitter has launched a mobile payment service.

Jack Dorsey has formed a new company called Square to develop a payment service and portable device which allows vendors to process payments and customers to track purchases via mobile phones. The service centres on a card scanner which plugs into an audio input jack.

The company will also offer features such as photo authentication and mobile receipt delivery, in an effort to create a "convenient alternative to paper money and receipts". Square is currently running a beta trial.

"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," the company said on its site.

"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."

Dorsey, who is serving as the new company's chief executive, fittingly announced the launch of Square on his Twitter account.