Square’s Growth ‘Off The Charts’ as Mobile Payment Pace Spikes 25%

Square is growing at a rate few can believe. The upstart maker of credit-card readers for smartphones and tablets has seen overwhelming expansion in recent weeks. According to Bloomberg, Square as increased its payment volume by as much as 25 percent… since just last month. Not yet three-years old, Square says it’s now processing transactions …   Read More

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Square is growing at a rate few can believe.

The upstart maker of credit-card readers for smartphones and tablets has seen overwhelming expansion in recent weeks. According to Bloomberg, Square as increased its payment volume by as much as 25 percent… since just last month.

Not yet three-years old, Square says it’s now processing transactions at an annualized rate of $5 billion.

One month ago, that figure was closer to $4 billion. But as more merchants learn of the benefits of accepting secure, efficient payments through Square, the service is taking off at a breakneck pace.

The San Francisco company is making cash from sales before 5 p.m. on any day available in merchants’ accounts on the next business day, compared with as many as five days out for other processors.

Juniper says the market that Square is dominating may top $170 billion in transactions by 2015.

“Sole proprietors and small businesses live and die by their cash flow,” Square Chief Operating Officer Keith Rabois tells Bloomberg. “They don’t have access to capital; banks don’t give them loans. They need to take the money they make today and use it to pay bills, buy things and pay employees the next day, so having access to funds is super-crucial for them.”

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1 comment

  1. Speedy Loan Search

    It may be difficult for Square to become profitable. Card companies are driving rewards cards with higher Interchange. Visa/MA determine which interchange category vendors fall into and they have an incentive to choose the more expensive tier – e.g.; Restaurants are now btw 154 – 210 bps + 10 cents per transaction. I hypothesize that Square's average coupon is lower then mkt avg based on the type of vendors they are signing up. For example: in a typical $10 food truck Square transaction the company may be losing up to 7 cents before fraud and operations. At best they are making 1 cent.

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