It appears the hype surrounding Square's forthcoming credit card dongle for iPhone may well be justified.

The beta unit the firm sent to do-it-yourself specialists Adafruit Industries havs been warmly received.

Square's dongle will enable small businesses to take payments for products or services without having to invest in expensive hardware and install lengthy applications.

The dongle plugs straight into the headphone jack of any iPhone or iPod touch handset and, as Adafruit attests, authorises credit card payments within a matter of seconds.

Adafruit has already posted a handy video that shows a very quick demonstration of the dongle and its associated software, Square's tech not only turning the iPhone into a card swiper, but also allowing users to sign for their goods using the touchscreen.



Square's dongle made a good impression at Macworld 2010 earlier this month, TUAW reporting that users will have to sign up for the service before downloading the app for an estimated $1.99.

Square itself then takes a small percentage fee from each transaction, donating a penny to a charity of the user's choice.

[source: TUAW]