Payment provider Square scraps gift card service

I talk to Reuters about Square killing its gift card product less than a year after launch.

The gift card service “wasn’t a very well thought-out experience,” said Rocky Agrawal, payment and commerce analyst at reDesign Mobile. Agrawal said he tested the gift cards at several merchants and at least half of the businesses did not know how to redeem them.

Square may also have had trouble dealing with different state laws covering gift cards. In California, if a consumer has a balance of less than $10 on a gift card, merchants are required to refund that value in cash, according to Agrawal.

“Merchants didn’t know anything about that when I asked them,” he said.

Story.