Square: From Payments to Banking
It’s been quite a journey for Square, Inc. over the last 10 years. As a giant in the payments sector of financial technology (FinTech), the unicorn made an immediate impact with its software app and square-shaped card reader connecting to mobile phones (via audio jack). The appeal of Square’s no-contract, transaction-only pricing for merchants provided immense growth.
The brand name in merchant services transformed into a complete financial services company. Square added new products for merchants, multiple partnerships, broadened its overall scope, became a public company, entered the cryptocurrency market, and is now an independently licensed bank. We explore the origins of this fintech pioneer, product and services, business models, and what’s next as a bank for SMBs (small and medium-sized businesses).
Where it All Started for Square
Square was founded in 2009 by Jack Dorsey and Jim McKelvey, who launched its flagship app the following year. Targeting the painpoint of merchants accepting cards as payment from anywhere, the company created a square-shaped card reader that attached to mobile phones and tablets.
Early angel investors included Shawn Fanning, Biz Stone, Marissa Mayer, Kevin Rose, and Dennis Crowley. Future founding rounds came from Khosla Ventures, Sequoia Capital, Kleiner…
