We posted a topic about a payment system for the iPhone called ‘Square’ earlier this month. With the Square system you need to attach a reader to the headset connection of the iPhone. VeriFone has created a second solution called ‘PAYware Mobile’ and launched it this week. If you buy an iPhone via VeriFone you get the device for free with the iPhone.

Users pay an activation fee of $49, a monthly subscription of $15 and a compensation of $0,17 per transaction. The creditcard information will be stored encrypted in the hardware, so even the iPhone doesn’t know the number. With a special stylus pen people can put write their signature.

The target group for Square and PAYware Mobile is different. PAYware is meant for shops who want to use the solution on a regular basis, while Square aims more on small shops and people who sell stuff on markets. You also don’t need a business account. Square plans to giveaway the creditcard reader for free. With VeriFone’s PAYware it’s more about retailers.

On January 15th VeriFone’s solution PAYware Mobile should go live.

More info: PAYware Mobile