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Today it is difficult to imagine online transfers without PayPal or Webmoney. These systems have strong competitors in the market, one of which is Square.

In 2015, the company held an IPO and now its shares are available for purchase.

The core of Square's business are payment systems. The company operates in B2B and B2C segments offering complex solutions for offline business, and payment solutions in Cash App mobile application. Interesting fact: The company was founded by Jack Dorsey, who founded Twitter $ TWTR a few years earlier.

Square offers a variety of products to market. On the Square platform, you can create a website or activate a payment system and receive money from the bank.

It also offers online cash registers and various readers for NFC chips and cards. Since Square products are multifunctional, the client does not need to connect several services, but do everything in one place. Software products include: Square Point of Sale, Square Virtual Terminal, Square Appointments, Square for Retail, Square for Restaurants, Square Invoices, Square Online Store, Square Loyalty, Marketing, Gift Cards, and Square Dashboard.

Dashboard

Square payment solutions

Provides Payment Management, Instant Transfer, Square Card, Square Capital and Payroll Project. In B2C, Square is represented by the CashApp application, which started as a provider of transfers from friends to freinds, and has now turned into a neobank.

What are neobanks

Neobanks are startups that provide financial services but do not have a banking license. Instead, they use the resources of a large bank.

Square has the edge with its own CashApp. The user can receive and send money. You can top up CashApp balance using any card.

Investments

CashApp has also added the ability to trade stocks and cryptocurrencies in the same app. The commission for trading shares is hidden in the payment for order flow.

Square potential

In June 2020, Square bought the Spanish fintech startup Verse (which allows users to transfer money via a mobile app). Square said that Verse will continue to grow and operate independently for the time being. Perhaps in the future Verse will become Cash App Europe.

Square and cryptocurrency

Square allowed Cash App users to buy and sell bitcoin back in 2017. Bitcoin is likely to play a key role in expanding into new regions, especially Africa. The Cash App can use cryptocurrency to bypass fragmented and inefficient financial infrastructure in Africa and other emerging regions. In this case, regulators become the main risks. Square will have to seriously consider such an international regulation issue as combating money laundering.

In October 2020, Square announced that it had transferred 1% of its assets to Bitcoin. The company bought 4709 bitcoins for $ 50 million. Since then, the value of bitcoin has tripled. Bitcoin's continued success = Square's success. The company also launched the Square Crypto initiative: a grants program for developers and a set of tools for the further development of cryptocurrencies. Bitcoin income is - 44.4%

E-commerce

Most recently, the company focused on ecommerce and launched Square Online, which allows merchants to easily create ecommerce showcases. The Square platform allows merchants to sell on social media like Facebook, Instagram and Pinterest, or use Square's payment processing on third-party ecommerce platforms like Wix.

Conclusion

The app already has around 7 million debit card customers and it’s  growing neobank market. Grand View Research predicts its volume will grow by 30% in 2021 to $ 47 billion. Square can benefit from this growth if it focuses on the banking side of the app business. The company serves millions of vendors in a variety of industries such as food processing, retail and service industries, and more. The company has strong earnings forecasts for the future.

Have you ever used Square? Share your opinion in the comments below! If you wanna learn more or know more you can contact my team or you can jump into a one-on-one call with me right now clicking one of the the below buttons.

Alessandro Rocco Pietrocola is an entrepreneur, fintecher, investor, blogger and author based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, UAE, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) and NZ FSPR (Financial Service Provider Register) Approved Person and has great experience as director of regulated companies.
He uses to dedicate part of his life to inspire others and help them achieve the most out of their lives. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He is Member of Institute of Directors in London, Member of Changer Club in Riga, Member of Fintech Association of Hong Kong, Member of Singapore Fintech Association, Member of Non Executive Director Association in London and Member of Alumni Network of Draper University in San Francisco. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.
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