A Square ticket right into the hot marketplace of payments
It’s no secret that Square hasn’t been making money for a while now. In 2013 it was reported that had made a loss of around $100 million, and The Wall Street Journal is now reporting that Square Inc has been talking to payments rivals for a possible sale.
The Journal is unsure if talks with Google about selling the business are still going on, and it appears that informal discussions took place with Apple and PayPal – although they never developed into anything serious.
However, it seems that Square is completely denying the fact that any conversation with Google took place, while a PayPal spokesperson also said that they never had talks with Square.
In general though, things aren’t looking overly positive for the mobile POS device due to an indefinite postponement of its initial public offering in 2014.
So, what’s a good outcome from all of this? If Apple aren’t interested in what Square has to offer, perhaps the likes of Amazon or Facebook would be?
After all, both parties are rumoured to be looking at creating their own payment systems.
Amazon denied the use of Bitcoins on its service, and hinted that it would be interested in the payments space if it could do it better than Amex or Visa. So perhaps acquiring Square could help it muscle into the marketplace – although Square does accept Bitcoin, so perhaps Amazon may not be the best fit.
On the other hand, Facebook could be the perfect platform for Square. It’s own Facebook Home could implement with Square’s payment tech rather effortlessly, and Bitcoin acceptance could work well on Facebook’s digital platforms. It’s also well established with many US retailers, notably Starkbucks, so there’s already the penetration that Facebook really wants its products to have.
It’s speculation, for sure, but not implausible.
What are your thoughts on the future of Square?