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P. 46
Education
StreetSmarts SM
A Square peg in a round
industry – part 2
By Tom Waters and Ben Abel Competitive potential
Bank Associates Merchant Services With Square's potential new features on the horizon, we
asked members of GS Online's MLS Forum, "Will this
n "A Square peg in a round industry – part 1," The make Square a more formidable competitor?"
Green Sheet, April 28, 2014, we looked at the foun-
dation Square Inc. has developed within our indus- Forum member Steve Norell did not appear to be con-
I try. Now we will explore what could be expected cerned saying, "[In my opinion what] Square is morphing
as Square continues to grow its presence. into or developing into with their recent announcements
and changes, is just another ISO albeit a very large one."
Square has always shown interest in expanding its
service offerings, pushing its vision into additional areas Member mbruno theorized ways that Square could
of the payments industry. The company has already continue to differentiate itself from standard merchant
released a suite of services ranging from Square Register services. "If they do go the ISO route … I believe they will
or Square Wallet, through Square Market to Square Cash. do so by leveraging data as the main selling point. They,
It has also established partnerships with Starbucks Corp. like PayPal, can be customer and merchant facing – which
and Whole Foods Market Inc., both major players in their presents a lot of potential for marketing. I know a lot of
respective industries. places that would pay a good amount for marketing that
was targeted to the phones in their customer's pocket."
In late 2012, Square crossed into international territory as
it began processing payments in Canada. In May of 2013, User gmartin, however, offered an exceedingly cautious
the company announced its mobile payment service is to perspective toward this potential leviathan. "With them
become available in Japan (at a slightly higher percentage venturing into custom pricing, merchant cash advances
rate). Square also recently revealed its next steps include and actual phone support, they are becoming a formidable
adding a merchant cash advance program, live customer competitor," he wrote. "I wouldn't be shrugging them off
support, custom pricing and an outbound sales staff. anymore, and I would think twice about sending anyone
to them."
It is important to note, however, that new features and
divisions simply equal new expenses unless they are Keeping business from moving in Square's direction has
successfully adopted. Square is built from venture capital become an easier task as well, as there are also several
and at the moment faces imaginary gains and real losses. other aggregators with similar models to now pick from.
In response to Square's success, a fair amount of "Square-
type" solutions are being offered directly by ISOs.
46
StreetSmarts SM
A Square peg in a round
industry – part 2
By Tom Waters and Ben Abel Competitive potential
Bank Associates Merchant Services With Square's potential new features on the horizon, we
asked members of GS Online's MLS Forum, "Will this
n "A Square peg in a round industry – part 1," The make Square a more formidable competitor?"
Green Sheet, April 28, 2014, we looked at the foun-
dation Square Inc. has developed within our indus- Forum member Steve Norell did not appear to be con-
I try. Now we will explore what could be expected cerned saying, "[In my opinion what] Square is morphing
as Square continues to grow its presence. into or developing into with their recent announcements
and changes, is just another ISO albeit a very large one."
Square has always shown interest in expanding its
service offerings, pushing its vision into additional areas Member mbruno theorized ways that Square could
of the payments industry. The company has already continue to differentiate itself from standard merchant
released a suite of services ranging from Square Register services. "If they do go the ISO route … I believe they will
or Square Wallet, through Square Market to Square Cash. do so by leveraging data as the main selling point. They,
It has also established partnerships with Starbucks Corp. like PayPal, can be customer and merchant facing – which
and Whole Foods Market Inc., both major players in their presents a lot of potential for marketing. I know a lot of
respective industries. places that would pay a good amount for marketing that
was targeted to the phones in their customer's pocket."
In late 2012, Square crossed into international territory as
it began processing payments in Canada. In May of 2013, User gmartin, however, offered an exceedingly cautious
the company announced its mobile payment service is to perspective toward this potential leviathan. "With them
become available in Japan (at a slightly higher percentage venturing into custom pricing, merchant cash advances
rate). Square also recently revealed its next steps include and actual phone support, they are becoming a formidable
adding a merchant cash advance program, live customer competitor," he wrote. "I wouldn't be shrugging them off
support, custom pricing and an outbound sales staff. anymore, and I would think twice about sending anyone
to them."
It is important to note, however, that new features and
divisions simply equal new expenses unless they are Keeping business from moving in Square's direction has
successfully adopted. Square is built from venture capital become an easier task as well, as there are also several
and at the moment faces imaginary gains and real losses. other aggregators with similar models to now pick from.
In response to Square's success, a fair amount of "Square-
type" solutions are being offered directly by ISOs.
46
