1) According to a February 2012 market analysis by Banking Research Associates, Square's target market consists of 5.7 million cash-based small businesses in the United States. 2) Construction businesses make up 47% of these small businesses, while retail trade accounts for 12% and professional services accounts for 13%. 3) The total cash-based revenue generated by these 5.7 million small businesses is $232.8 billion annually, with construction, retail trade, and professional services accounting for the majority of this revenue.

1. Square’s Target Market:
5.7 Million Cash-Based Small
Businesses
Market Opportunity Analysis by
Elizabeth Rowe
Banking Research Associates
February 2012

2. Square's Target Market: Industry Categories of
5.7 Million Cash-Based Small Businesses
Fishing and Hunting
1%
Repair &
Food Services Fishing, and Hunting
Maintenance
3%
14% Construction
Health Care
Manufacturing
Assistance
5% Retail Trade
Transportation
Construction Professional Services
Professional Services
47%
13% Health Care Assistance
Food Services
Repair and maintenance
Retail Trade
12%
Transportation
3%
Manufacturing
2%
Source: Banking Research Associates, 2012

3. Square's Market Opportunity:
$232.8 Billion in Cash-Based Small Business Revenue
($000)
$3,048,802
$3,781,488
$28,649,993
$4,592,864
Fishing and Hunting
Construction
Manufacturing
Retail Trade
$35,488,183 $129,981,680 Transportation
Professional Services
Health Care Assistance
Food Services
$7,106,504 Repair & Maintenance
$14,354,604
$5,821,066
Source: Banking Research Associates, 2012