SAN FRANCISCO (1/5/15)--Square, the company that popularized the off-shelf mobile card reader, has set its sights on a diversification strategy that includes small business loans, marketing and e-commerce.
First on the company's priority list is increasing penetration of Square Register, the company's mobile app, Square spokesperson Faryl Ury told American Banker (Jan 31). Square Register operates as a full point-of-sale system with added business-management features.
Square is also garnering "a tremendous response" from merchants using Square Capital, the small-business financing program launched in 2014, Ury said. Merchants pay loans back as a percentage of their monthly sales, plus a fee. Square requires no set deadline to repay the full loan amount and does not penalize merchants for months when sales are slow.
In mid-December, Square sellers processed a company record $100 million in sales in one day. As a group, Square merchants are equal in size to the 13th largest retailer in the country in annual sales, the company said.
More than 40% of Square's payment volume comes from sellers who handle more than $125,000 in payments a year. That's an increase from 25% in 2012. The fastest growing segment of its merchants accept more than $500,000 in card sales per year, Square told the American Banker.
Other new products include an order-ahead app, an in-store pickup service, an interactive receipt, a person-to-person payment app and an upcoming EMV-chip card reader.