Square Profit Square

The founder and CEO of Square - a startup that provides the ability to process payments from plastic cards from iOS and Android, shared an interesting photo from the office (a huge dashboard we like), as well as some entertaining figures giving a brief excursion into the Square business.

Frankly, this company has long been in my field of vision, but only recently, after Visa announced a strategic investment in a startup, it became clear that mobile payments had a great future.
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Today, in numbers, the situation is as follows: Square has supplied more than 340,000 card readers, and has about 335,000 activated users.
Over the past 10 days, thanks to the placement of the device in Apple stores in the United States, profits increased by 40% - up to $ 59,390 per day. The total amount of transactions is modest $ 137 million, with 24k transactions per day.
The growth rate, which today shows all the technology, is truly impressive: in March of this year, Square processed transactions in the amount of $ 1 million every day - today, after two months, this amount is $ 2 million.

Is that the hydrogen bomb grows in volume faster.

But what is even more interesting is the interest of Visa, vendor number one, whose product is in the pocket of every person in a civilized country today.

For those who are not in the know, I’d remind you that, historically, Visa tried to enter the new market of electronic mobile transactions on its own. First, with the help of our own development based on NFC chips, after - by launching our own analogue of PayPal.

It becomes obvious that the achievements of Square (where, by the way, 2/3 of transactions are made using the cards of this company) forced to overestimate the situation in Visa, and to meet the startup. According to statistics, in this market there are 27 million business representatives who do not work with plastic cards in principle. As Keith Rabois, COO Square says: “We allow all these companies to start accepting plastic cards with minimal investment in the shortest possible time.”

The amount, which "entered" Visa in a startup, was not disclosed. But judging by the fact that one of the top managers, Visa is now acting on the board of directors suggests that a “strategic investment” has been made with the future. Still, if the market for mobile plastic transactions will show the same pace in the near future, competitors will also want to enter it: MasterCard, American Express, etc. The Square commission is 2.75% per transaction. These cents have already begun to turn into millions of profits.

For Square, such a partner means not only increased influence, but, first of all, confirmation of “good intentions”. For some time, the network actively discussed security issues related both to the Square card reader itself and to the user data transfer and storage technology. Two months ago, VeriFone , a competitor of Square, published an open letter to the public and industry, where it warned about the "huge security holes" of the platform and Square iron. Jack Dorsey immediately responded to this with arguments, and recent events have shown that all fears are in vain.

Now, when Visa, JP Morgan Chase stand behind Square (this office processed the second round of investment, the company's securities manager) and a huge billboard in Time Square, events are becoming more interesting.

via TC & RRW