Square's CEO, Jack Dorsey, explained on this week's earnings call why he puts its subsidiary, Caviar, on a silver platter; Square's payment-handling service is used by many restaurants, while Caviar's food delivery-enabling platform allows those restaurants to reach a customer base eating at home; the key for Dorsey is cross-selling services that grow their customers' businesses, even if the synergies aren't apparent at first bite; on CNBC's Squawk Box the day after the earnings call, CTO Sarah Friar said that Square has been "executing on all cylinders." Source
Square has launched its mobile payment services for businesses in the UK; the UK marks the fifth country to offer the firm's services and Jack Dorsey says the firm plans to also expand further throughout Europe; with the launch, small businesses in the UK can now begin to use all of the services offered through the firm's feature products, the Square Reader and the Square Point of Sale app for transactions. Source
If asked where to get a small business loan most people would state their local banks or even some of the bigger traditional...
deBanked reports that Bond Street has stopped making new loans; seven months ago Bond Street announced a $300 million loan purchase agreement with Jefferies; the WSJ outlines that engineers, product developers, and risk and marketing specialists will join Goldman’s consumer bank; Square is allegedly also in talks with some Bond Street employees. Source
Square CEO Jack Dorsey tells Fast Company that they are moving full speed ahead with their banking license; Dorsey was recently in New York to unveil Square Register, a hardware device; the company has been lending to merchants since 2014; SoFi recently withdrew their banking application following the scandal surrounding Mike Cagney; a timeline for the application is not known. Source
As non bank lenders continue to gain market share across different loan segments, we wanted to give a complete overview...
SeekingAlpha reports on the valuation of Square, Inc. citing several factors that have led to an overvalued stock price of $17.37; the author reports that assumptions on the growth of its customers is overestimated; says it will have difficulty when expanding to higher value customers and internationally also reporting that the business model is at risk to lower cost market competitors; also says that its reliance on Square Capital lending to retain customers and balance attrition of gross payment volume is unlikely primarily due to market competition. Source
US fintech Square reported $16.4 billion in gross payment volume, a 32% gain from 2Q16, as the company attracted larger sellers and increased product usage through cross selling; revenue was $552 million, increasing 26% from 2Q16; earnings per share were $0.07, increasing from $0.02 in 2Q16; the firm's lending business, Square Capital, reported a 68% year over year increase in loan volume for the quarter. Source
American Express is looking to use the same style data that has made PayPal and Square so successful in small business lending; Gina Taylor Cotter, senior vice president and general manager of global commercial financing at American Express. tells American Banker,“We have done some research on this and we are trusted providers, so this puts us neatly between banks that may have a longer application process and the online lenders who are fast, but maybe a bit more expensive." Source.
Square has started to allow some of its Cash mobile app users to buy and sell the cryptocurrency through the app; a Square spokesperson said, “We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash app customers,” as reported by Crowdfund Insider. Source.