If you haven’t heard about the startup Square, you are in luck. I’m going to give you the latest on them. Keith Rabois, COO of Square, joined 14 months ago when there were 14 employees and no users. At Mobilize, he talked about how a small, white, square pluggable hardware piece is making its dent in the payment space.
About 26M US businesses do not accept credit cards today. In order to process credit cards, you need to pass a credit card check yourself (e.g., FICO score) and provide your last year’s business sales. For a person just starting out, this is an instant fail on two accounts. Then steps in Square.
Today, 750,000 merchants accept Square, just 10% of companies who accept credit cards. Before Square, 50-60% of users would not be able to accept credit cards. Of those who apply for Square, 93% are accepted and can accept payments in less than 3 minutes. What about the FICO score and sales requirement? Square uses automated and manual analytics to observe unusual transactions for fraud protection.
When asked about NFC and other payment options? Rabois said, “We don’t worry about what other people are doing”. He doesn’t think that NFC will resonate with mainstream America. He further adds that Google is interested in NFC to track spending habits which is better ROI for ad spenders which includes top 100 retailers.
Square will be having two major releases in October – one for Square, one for Card Case. Then in December, they will have some things to say, but on the hush hush.
Rabois puts it plainly, “Square is Paypal for the real world”.