Mobile payments company Square is launching a new version of its Card Case app that will integrate iOS 5 support for geofencing – a virtual perimeter, or fence, around a specific location.

Launched in May, the virtual card case contains information – such as contact info, coupons, order and purchase history, and more – of all the merchants consumers shop at that accept Square. The shopper has the ability to pay with his or her name by putting a purchase on a virtual tab.

Now Square is asking its users to opt-in to the geofencing feature so that when a consumer is within 100 meters of a Square merchant, he or she can walk into the store, say their name at checkout, and complete the purchase without ever opening the app or pulling out the phone.

Your Square app will open a tab for a customer nearby and show their account, name, and photo – for verification. When it’s time to pay, the customer will say their name and you can verify and finalize the transaction. Your customer will also receive a digital receipt through push notification.

In addition to simplifying the relationship between merchant and consumer, the update also provides you with the ability to add more information to your contact cards – which consumers store in their card case. You can now include menus, photos, directions, and click-to-call functionality. Perhaps most advantageous of iOS 5 is the Twitter integration. You’re now able to link your Twitter account and tweets, as well as view comments and reviews from customers.

Square’s Card Case was made available to all businesses in late August and now has up to 20,000 merchant locations across the nation. While providing a better experience for consumers and opening up opportunities for merchants – in terms of loyalty – the technology still needs to gain more traction.

The updated Card Case app is available in the App Store; Android users can expect an update soon.

[Via: TechCrunch, Image credit: Laura Bittner]