Square is a financial services company that provides credit card processing solutions for mobile devices. Founded in 2009 by Jack Dorsey, Square has raised over $341 million in funding from investors including Kholsa Ventures, Sequoia Capital, and Citi Ventures. Square's main products include a credit card reader that plugs into mobile devices, and apps for iOS and Android that allow businesses to accept payments. The company has experienced rapid growth, processing over $1.25 billion per month in payments from 3 million users in 2013. While facing some regulatory issues, the document predicts continued success for Square given its strong funding, partnerships, and focus on an underserved small business market.

1. Joseph Gracik
EECS 441 – Fall 2013

2. Products
• Credit card processing*
• Square Reader (device)
• App on iOS & Android
• 2.75% per swipe
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Square Wallet
Square Market
Square Cash
Square Stand

3. Financials
• Angel Investors +
Series A ($10 M)
• Kholsa Ventures
• Marissa Mayer
• Kevin Rose (Digg)
• Series B ($27.5 M)
• Sequoia Capital
• Visa
• Series C ($103 M)
• Series D ($200 M)
• Citi Ventures
• Starbucks
• ~ $341 M total
• Valuation
• $3.25 B in 9/2012
• Est. $5.5 B in 2013

4. History
• Founded in 2009
• Jack Dorsey (Twitter co-founder), Jim McKelvey
• Reader & app introduced in 2010
• 2011
• 1 million users
• 2012
• Starbucks partnership
• 2 million users
• 2013
• 3 million users at start of year
• Processes $1.25 billion/month

5. What’s Hot?
• Expansion into new
regions
• Canada 2012
• Japan 2013
• Targeting small
businesses
• Square stand
• Starbucks partnership

6. Secret Sauce
• Low barrier to entry
• Reader and app are free
• Straightforward pricing
• Ease of use

7. Story
• Issues with financial regulations
• March 2013: Cease & desist from Illinois
• August 2013: Fined $507,000 by Florida

8. Competition
• PayPal Here
• PayPal integration
• Accepts checks
• Better support
• Intuit GoPayment
• More flexible pricing
• Better support
• Traditional processors
• Best rates

9. My Prediction
• Success
• Well-funded and well-connected
• Fast growth & good performance
• Not a threat to major CC processors, but
targeting a different market

10. Questions?
• Sources:
• http://www.crunchbase.com/company/square
• http://www.nytimes.com/2012/07/19/technology/personaltech/as-pay-byphone-advances-square-takes-another-leap-state-of-the-art.html?_r=1&
• http://techcrunch.com/2012/06/14/square-doubles-users-accepting-creditcards-to-2-million-in-six-months/
• http://news.cnet.com/8301-1023_3-57559148-93/square-coo-predictsmonster-2013-says-starbucks-is-just-the-beginning/
• http://www.fastcompany.com/3017331/most-innovative-companies2012/05square
• http://techcrunch.com/2013/03/01/square-slapped-with-cease-and-desistby-illinois-state-department-of-financial-regulation/
• http://techcrunch.com/2013/08/16/square-fined-507k-in-florida-foroperating-a-mobile-payment-service-without-a-money-transmitter-license/
• https://squareup.com/
• http://en.wikipedia.org/wiki/Square,_Inc.
• http://www.pcworld.com/article/239250/square_vs_intuit_gopayment_mob
ile_credit_card_systems_compared.html?page=2
• http://www.cardfellow.com/blog/paypal-here-vs-square/