Square hits 1M merchants

Square hits 1M merchants
Tags: Mobile Apps, POS
December 13, 2011

Mobile POS darling Square keeps hitting milestones.

The company's official Twitter account announced yesterday that 1 million merchants had signed up for its point of sale solution. Company CEO Jack Dorsey put that number in persepective on his Twitter feed:

"To put that in perspective: there are only 8 million merchants who accept credit cards in the US. @Square has added 1 million."

There was no response from Dorsey on how many of those merchant accounts are actually active, but he said recently that Square is processing $11 million per day in transactions.

Square's mobile point of sale product lets merchants, usually small businesses, use their smartphones as credit card terminals. Since its launch last year the company has raised a substantial amount of money. In its last round of fundraising Square raised $100 million, boosting the company's valuation to $1 billion.

For more on this subject visit the POS research center.

Reader Comments

Greg Serv

about 5 months ago

The current incarnation of the dot-com madness will be no different from the previous one in that it will produce real companies which will be successful long after the bubble has burst. Square will be among them. Unlike LinkedIn and Skype, to name just a couple, Square shows you exactly how it will make real money. A while back we did the numbers on how profitable Square is and our estimate showed that for every $1 million processed, Square gets about $13,000 – $14,000 in revenues, but that was before the start-up dropped the per-transaction fee from its discount rate, which will reduce this total by at least a couple of thousand dollars. Still, Square probably gets about a cent for every dollar it processes. http://blog.unibulmerchantservices.com/why-squares-sky-high-valuation-unlike-linkedins-or-skypes-makes-sense