I see Square all over the place now. Maker Faire uses it; we bought our Christmas tree with it; the ferry to Angel Island uses it; we bought some vodka from a tiny distillery in Seattle with it; we found a great smoked fish shack in Central California that uses it. All these places were cash-only before Square.
There's certainly a lot of competition in the space, but I'm amazed at how different the small business landscape is from 3 years ago. Previously many places that weren't big chains were cash-only; now virtually nobody is, and many of them are using Square (& competitors) to take credit cards.
Of relevance - Square is still a backend payment processor for several companies, even if it doesn't have the device on the front end. They still process payments for Starbucks, in lieu of Bank of America. It is not clear whether they make any money at it, though.
