Square is going after established software vendors who sell point of sale systems and their well-established reseller channels. Square is also going after mobile payment processors and gateways selling both directly and through ISOs and other channels. While Square’s direct model is very attractive from a cost basis – and what’s not to like about the app store distribution system – it is going to get harder for the company to win sufficient business to justify the whopping $1 billion valuation it has just gained.
Mary Meeker, the long-time Internet stock analyst and current Kleiner Perkins partner, is joining Square’s board. Earlier this month, former Obama advisor (and Harvard president) Larry Summers joined Square’s board.
There’s obviously a huge opportunity here, and Square seems to be moving as fast as it can to grab as much of the market as it can.
Click here for the story: http://www.businessinsider.com/square-1-billion-valuation-2011-6?op=1