Square Inc. has ended its gift card service, according to a report from Reuters, about half a year after launching the program.

Square launched a digital gift card service in December for consumers to use at merchants that accept Square Wallet, the company¬ís mobile payment app.  Square's digital gift cards were compatible with Apple's Passbook app, allowing consumers to access the cards from an iPhone's lock screen.

Several merchants had problems redeeming the gift cards and Square itself may have encountered problems dealing with state legislation on gift cards, according to Reuters.  A Square representative did not respond to an inquiry from PaymentsSource by deadline.

But abandoning the gift card service may not be a detrimental thing for Square, led by Twitter co-founder, Jack Dorsey. The company recently overhauled its mobile wallet and launched a Square Market website, attracting fresh attention to the merchants that use its mobile payment offerings.

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