Twitter co-founder on new payment device

Jack Dorsey is best known for co-founding Twitter, the social media site that communicates messages in 140 characters or less. However, in his spare time, he runs another tech company that handles $4 billion a year in credit card transactions.

His new company Square uses a free device that lets people take credit card payments with their iPhones, iPads or Android phones. It could make traditional credit card readers obsolete.

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Twitter is more than a social network, says co-founder Jack Dorsey

"We remove all the fees, we remove the restrictions, we remove all the mechanical stuff you have to go through," Dorsey said. "We can actually make it a delightful software experience."

Credit cards typically charge businesses between 2.5 and 5 percent, and fees for equipment and usage. Square charges a flat 2.75 percent and the equipment is free.

Users also have valuable information about their customers. It's something Dorsey is passionate about.

"A lot of what we're doing this year is making sure the small businesses have the data they need to grow," Dorsey said. "We can say you know you sold this number of cappuccinos today, this number of people also bought biscotti, this is what happens on a rainy day, this is your busiest hour, and then they can make decisions based on all that."

That benefit works everywhere from the coffee house to the White House. President Obama and GOP hopeful Mitt Romney have adopted Square on the campaign trail.

When asked if candidates will make more money using Square or because they're using Square, Dorsey replied, "I think it's really going to change the game for how you raise for campaigns. People are carrying credit cards. They're not carrying cash, they're not carrying checkbooks, but they want to donate to the campaigns."

But Dorsey is more focused on people than politics. "A lot of people want to start their own businesses," he said. "So I would love Square to be the reason they finally take the jump."

Dorsey still works every day at both Square and Twitter, working eight-hour days at each company.

When asked about his 16-hour days, Dorsey said, "I'm very, very disciplined about my time."

For Rebecca Jarvis' full report and tour of Dorsey's San Francisco headquarters, watch the video in the player above.

Dorsey also discussed what innovators need to know about moving forward with their ideas and what he's learned from his early mistakes at Twitter. Watch that video -- seen only on the web -- below.

Also, in this discussion you'll seen only on the web, Dorsey talks about Twitter's future and the big names involved in the company. Watch that video in the player below.