Vancouver’s Payfirma launches mobile payment app for the iPhone (a Square for Canada)

Vancouver-based Payfirma has launched an iPhone app that lets people make mobile payments using Interac or any major credit card.

The app is free, and once you have an account set up, merchants can accept credit cards from your iPhone. Receipts can even be emailed to you.

Payfirma is akin to Square, which was co-created by Jack Dorsey of Twitter. Square sees retailers put a card reader into the headset jack of their iPhone or Android gadget, enabling them to accept money from customers. Square is limited to the U.S. but Payfirma has solved this issue for us.

Payfirma’s app works on the iPhone 3GS and even the 3G, as well as the iPod Touch.

It will eventually be available for the iPad and Android devices.