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Summary
- US digital payment platform Square has done exceptionally well on the NYSE, growing from US$9 a share in late-2015 to US$281.81 on 5 August 2021.
- Cash App & Point-of-sale system are some of the finest products offered by Square that facilitate easy business transactions.
- Square has entered into Australia’s biggest ever buyout deal with Afterpay for around AU$39 billion.
Square, Inc. (NYSE:SQ) is one of the fastest growing fintech companies in the world with market capitalisation of US$122 billion, as of 5 August 2021. Co-founded by Twitter CEO Jack Dorsey and American businessman Jim McKelvey in 2009, the company is engaged in building tools that bridge the gap between a business idea and its success.
Off late, the company has been making headlines due to its US$29 billion all-stock deal to acquire ASX-listed fintech major Afterpay.
Let us zoom in our lens to know more about Square.
Image source: © Selagin | Megapixl.com
Related article: Square set to buy Afterpay in AU$39 billion deal: Will BNPL space feel the ripples?
Square’s innovative offerings for businesses of all sizes
Started with the novel concept of developing a mere credit card reader to make payments via smartphones, Square has now grown out to be a bigwig in the world of financial technology.
The wide array of tools offered by the NYSE-listed company has found application across industries be it electronics, telecommunication, healthcare, or technology. Moreover, it is available for use by businesses of all sizes.
One of the finest products by Square is its Cash App, which allows people to carry out instant money transactions. Another product by Square, point-of-sale (POS) system serves as a platform for users to pay bills and enables business owners to receive payments. Square POS also allows merchants to share and track invoices, email receipts, as well as keep a record of real-time sales data. Square tools let sellers accept chip cards and NFC payments as well.
Square Analytics, Square Stand, Square Market, Square Capital, and Square Appointments are some of the other products offered by Square which further smoothen business transactions.
Image source: © Timonschneider | Megapixl.com
Also read: Square (NYSE:SQ) Bitcoin Stake Reaches US$220 Million
To avail the benefits of the Square tools, users need to install Square Reader on their mobile devices to allow the app to read your credit and debit cards. What may just appear to be a small white card reader is actually a great invention and a gateway to your business goals.
Square holds momentous presence on the NYSE
Square issued its initial public offering in November 2015 on the New York Stock Exchange (NYSE) with stock price of US$9 per share. The company had a market capitalisation worth around US$3 billion at that time.
However, strong revenue growth due to successful launch of new offerings quarter after quarter led to a sharp increase in its share price.
Today, Square is one of the top performing stocks on NYSE. Its shares traded at US$281.81 on 5 August on the NYSE.
Must watch: What are the 5 fintech predictions for 2021?
Square signs Australia’s biggest ever buyout deal with Afterpay
Square, Inc. has inked a scheme implementation deed to acquire Afterpay Limited (ASX:APT) for an implied value of around AU$39 billion. The US-based firm intends to integrate Afterpay into its existing Seller and Cash App business units.
Afterpay is an emerging ‘buy now, pay later’ (BNPL) platform, catering to more than 16 million consumers and nearly 100,000 merchants globally, as of 30 June 2021.
Image source: © Eamesbot | Megapixl.com
The two companies dealing in financial technology will now share one dais to further smoothen the relation between sellers and cash app ecosystems. This will help them achieve the common goal of economic empowerment and financial inclusion of all.
The transaction is targeted at enabling the companies to enhance their financial offerings, resulting in improved access to an expanded consumer base while driving incremental revenue for merchants of all sizes.
The transaction is likely to conclude in Q1 2022.
Also read: Which are the five hottest fintech stocks in Australia?
