24 March 2017
visit nextgenbanking.co.uk

Square gets defensive about 'totally bogus' myths

15 August 2014  |  8056 views  |  0 wrong way

With Amazon threatening to eat its lunch and rumours swirling about a lack of strategy and profits, Square has gone on the defensive with a blog post explaining why "myths" about Jack Dorsey's baby are "totally bogus".

This week Amazon made its widely anticipated move into the crowded mPOS market, launching its dongle and app-based contender with an aggressive pricing strategy that undercuts Square.

Retailers that sign up by the end of October will pay just 1.75% per swipe until the end of 2015, after which the price goes up to 2.5% - still less than the 2.75% charged by Square.

At number one in its 10 "myths", Square insists that "nope" it is not more expensive, although it does not say what it is not more expensive than.

The firm also hits back at claims that it is struggling. In April the WSJ reported that Square had had some informal talks with potential bidders for the business.

A sale was on the cards because, despite revenues of $550 million, Square posted a loss of around $100 million in 2013 and the firm had already burned through more than half of the $340 million it had raised since 2009 as it struggled with the thin margins on the 2.75% fees it charges merchants, said the Journal.

But, insists Square: "We're well-capitalized and putting our money to good use: investing in people and new products. Reports that we tried to sell the company, or of a delayed IPO? False. We're here for the long-term."

The other "myths" the post tries to bust include that Square is not secure, has no customer service, is unreliable and only works with Apple.

The post comes as Square faces a change in its public perception. Once the darling of the fintech world thanks to its massive funding rounds, deals with retail giants such as Starbucks and glamorous founder Dorsey, the firm has recently been met with growing scepticism.

A recent Fast Company profile depicted a firm in a "frenzy", "scrambling" to build up a profitable business.

On Twitter - Dorsey's other baby - reaction to the "myths" blog post has been largely negative. Cristina Cordova from another payments startup, Stripe, wondered:

While Verge reporter Casey Newton found an apt analogy:

KeywordsEFTPOS

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Amazon undercuts Square and PayPal with mPOS launch

Amazon undercuts Square and PayPal with mPOS launch

13 August 2014  |  12398 views  |  0 comments | 16 tweets | 34 linkedin
Square buys food delivery outfit Caviar

Square buys food delivery outfit Caviar

05 August 2014  |  3931 views  |  0 comments | 1 tweets | 1 linkedin
Square gears up for US EMV switch with chip card reader

Square gears up for US EMV switch with chip card reader

30 July 2014  |  8377 views  |  0 comments | 10 tweets | 11 linkedin
Square moves into small biz lending

Square moves into small biz lending

28 May 2014  |  7657 views  |  0 comments | 13 tweets | 13 linkedin
Square to open New York office to house 350 employees

Square to open New York office to house 350 employees

25 April 2014  |  4470 views  |  0 comments | 5 tweets | 4 linkedin
Square denies it discussed sale to Google

Square denies it discussed sale to Google

22 April 2014  |  5658 views  |  1 comments | 12 tweets | 8 linkedin
Square launches e-mail P2P payments service

Square launches e-mail P2P payments service

16 October 2013  |  9153 views  |  6 comments | 20 tweets | 10 linkedin
Square launches e-mail cash transfers; Google shutters CheckOut

Square launches e-mail cash transfers; Google shutters CheckOut

21 May 2013  |  8030 views  |  0 comments | 20 tweets | 16 linkedin
PayPal and Square jostle for control of the cash register

PayPal and Square jostle for control of the cash register

15 May 2013  |  8929 views  |  0 comments | 8 tweets | 5 linkedin
Square raids PayPal for retail expertise as POS terminal business builds

Square raids PayPal for retail expertise as POS terminal business builds

02 May 2013  |  7396 views  |  0 comments | 14 tweets | 1 linkedin
Square Wallet gets a caffeine jolt at 7000 Starbucks stores

Square Wallet gets a caffeine jolt at 7000 Starbucks stores

08 November 2012  |  8452 views  |  0 comments | 11 tweets | 6 linkedin
Square closes $200m funding round

Square closes $200m funding round

17 September 2012  |  6939 views  |  0 comments
Square bids to take over the point-of-sale

Square bids to take over the point-of-sale

05 March 2012  |  10486 views  |  2 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Participate in the surveyVisit capgemini.comvisit abe-eba.eu

Top topics

Most viewed Most shared
French retailer Carrefour launches online bank accountFrench retailer Carrefour launches online...
47852 views comments | 15 tweets | 35 linkedin
hands typing furiouslyMachine Learning: Lessons for Banks From S...
10478 views 0 | 13 tweets | 12 linkedin
Can banks really win in the payments business of the future? – new Finextra reportCan banks really win in the payments busin...
8244 views comments | 23 tweets | 37 linkedin
European Commission opens public consultation on fintechEuropean Commission opens public consultat...
6899 views comments | 37 tweets | 22 linkedin
Westpac wants to take over your messaging keyboardWestpac wants to take over your messaging...
6864 views comments | 4 tweets | 10 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job