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News
A match made in cyberspace?
"Traditional acquirers already have Aite Group LLC Analyst Nathalie
Reinelt also reminded the payments
small merchants covered, so there industry that the acquisition talk
surrounding Square is based on
wouldn't be much in it for them to rumor and unnamed sources, and
that Square has publicly denied the
offer a large enough sum to make it claims. However, in speculating
about what type of business would
attractive for Square to sell, whereas benefit from purchasing Square,
tech companies are notorious for Reinelt turned to potential suitors
coming from Silicon Valley rather
having deep pockets." than traditional payments.
"[I]t would make more sense for it to
– Nathalie Reinelt, Aite Group come from the tech sector," she said.
"Their product, culture and user
experience-centric payments phi-
losophy is more in line with Silicon
Valley, and that partnership would
"I see them as a very formidable competitor," he said. "They have access to make more sense.
a lot of capital – number one. Number two, they're one of the few that has
both consumers and merchants using their product, and money has been Traditional acquirers already have
put into them at a $5 billion valuation. So regardless of whether they are small merchants covered, so there
making money, if that company is really worth $5 billion, they have created wouldn't be much in it for them to
an enormous amount of wealth." offer a large enough sum to make it
attractive for Square to sell, where-
as tech companies are notorious for
having deep pockets."
Furthermore, Reinelt believes Square
would be a better fit for Amazon or
PayPal than Google Inc. or Facebook.
"Google and Facebook use so much
data for marketing, and payments
is not their core focus, which could
make merchants and consumers a bit
leery," she said. "Amazon and PayPal
are merchant-focused payment
companies, which makes them a
much better match."
Reinelt sees the intriguing possi-
bilities of a Square-Amazon match,
"considering Amazon has reportedly
entertained the notion of taking their
digital wallet into the brick-and-mor-
tar space via their Kindle tablets."
For that reason, "Square's business
model would fit in nicely with that
initiative, albeit they would have
to address the fact that the Square
Stand is an iPad versus a Kindle," she
added.
12
A match made in cyberspace?
"Traditional acquirers already have Aite Group LLC Analyst Nathalie
Reinelt also reminded the payments
small merchants covered, so there industry that the acquisition talk
surrounding Square is based on
wouldn't be much in it for them to rumor and unnamed sources, and
that Square has publicly denied the
offer a large enough sum to make it claims. However, in speculating
about what type of business would
attractive for Square to sell, whereas benefit from purchasing Square,
tech companies are notorious for Reinelt turned to potential suitors
coming from Silicon Valley rather
having deep pockets." than traditional payments.
"[I]t would make more sense for it to
– Nathalie Reinelt, Aite Group come from the tech sector," she said.
"Their product, culture and user
experience-centric payments phi-
losophy is more in line with Silicon
Valley, and that partnership would
"I see them as a very formidable competitor," he said. "They have access to make more sense.
a lot of capital – number one. Number two, they're one of the few that has
both consumers and merchants using their product, and money has been Traditional acquirers already have
put into them at a $5 billion valuation. So regardless of whether they are small merchants covered, so there
making money, if that company is really worth $5 billion, they have created wouldn't be much in it for them to
an enormous amount of wealth." offer a large enough sum to make it
attractive for Square to sell, where-
as tech companies are notorious for
having deep pockets."
Furthermore, Reinelt believes Square
would be a better fit for Amazon or
PayPal than Google Inc. or Facebook.
"Google and Facebook use so much
data for marketing, and payments
is not their core focus, which could
make merchants and consumers a bit
leery," she said. "Amazon and PayPal
are merchant-focused payment
companies, which makes them a
much better match."
Reinelt sees the intriguing possi-
bilities of a Square-Amazon match,
"considering Amazon has reportedly
entertained the notion of taking their
digital wallet into the brick-and-mor-
tar space via their Kindle tablets."
For that reason, "Square's business
model would fit in nicely with that
initiative, albeit they would have
to address the fact that the Square
Stand is an iPad versus a Kindle," she
added.
12
