Twitter Co-Founder Jack Dorsey Says Square Can Add Value to Credit Cards for Merchants

by Mercator Advisory Group 0

In an interview with Wired magazine, Twitter co-founder Jack Dorsey says that his company’s Square credit card acceptance devices can bring more information to credit card transactions and give sellers detailed information about their businesses. One of the main values of electronic transaction is data capture, but Dorsey believes that the current system does not take full advantage of the possibilities for small businesses.

Jack Dorsey: On the web, companies use things like Google Analytics to learn how people are interacting, what people are driven to, and why. People use that data to build their businesses. But offline merchants, who still account for 94 percent of commerce in the world, have no real way to capture that kind of data. Square can tell merchants how many cappuccinos they sold for the day. And then they can start mining that data. Like what percentage of people that bought cappuccino also bought biscotti? What happens when it rains? What are my busiest hours? That is critical data that most small businesses just don’t have.

While Dorsey still talks about focusing on micro-businesses such as dog walkers, his vision of using data to figure out the busiest days of the week and average prices of a cup of coffee suggest that Square may be looking to move up market to small businesses that have more infrastructure and traditional methods of card acceptance. It could be the signs of new markets to come for Square.

Read the complete interview here: http://www.wired.com/magazine/2011/05/mf_qadorsey