Square Inc. Loves Apple Pay

by Sarah Grotta 0

Square has been rolling out its mobile EMV capable POS solution and enjoying a surge in sales as reported in The Motley Fool:

Square launched its mobile payment solution in the fourth quarter last year. The $49 reader accepts both NFC-based mobile payments and credit cards equipped with EMV chips. Demand has been strong; Square has sold nearly 500,000 of them to date. Square’s hardware revenue rose 634% last quarter on an annual basis and 154% sequentially as its merchant partners upgraded their equipment.

Square’s solution also is capable of NFC transactions meaning that Square merchants could accept NFC based mobile wallets including Apple Pay and Android Pay. The association between these wallets and Square is mutually beneficial. Square increases interest in its products by being associated with the big wallet brands and the wallet certainly enjoys better exposure as acceptance locations increase. Jack Dorsey, CEO Square, commented during their most recent earning call:

We want to be able to associate our logo with the ability to pay with your phone…we think there’s a huge potential for us to really win the behavior…we believe the opportunity for us is first and foremost, to associate our logo with the new behavior…we think there is [an] opportunity now…[around] actually paying with your phone…the biggest opportunity for us, is we get to associate [NFC payments] with the logo. If you see a white square, you know you can pay with your phone, and you just don’t have that predictability with any… other hardware.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

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