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But will it really pay dividends? We caught up with Ross Rubin, principal analyst at Reticle Research, to get his take on the innovation. He told us there have been a number of attempts over the years to get smartphones, and the iPhone in particular, to be compatible with existing point of sale terminals -- and it's been difficult.
"The Loop AppCessory would appear to be a very inexpensive add-on device that plugs into the headphone jack much like the Square credit card meter. But rather than enabling the iPhone users to accept credit cards it would allow their iPhones to essentially mimic credit cards by working with a mag stripe reader," Rubin said.
"Obviously, having a separate device is going to be something of a barrier. If you are reaching into your pocket to get your phone, it's not a big leap to get a credit card. However, it could potentially allow for less clutter by creating virtual credit cards in an app that the iPhone users could use. The bottom line is consumers aren't going to make too much extra effort. The whole premise of credit cards is greater convenience, so that's the challenge that any accessory would face."