How Square Makes Money

Square began in 2010 after the invention of a small credit card reader that plugged into iPhones. About 10 years later, the company has grown into a $26 billion fintech behemoth under Jack Dorsey's leadership. Square profits off a lot more than card swipes at your favorite trendy coffee shop.

The company provides a wide range of software products for sellers that helps simplify everything from payroll to making appointments with customers. Square offers small business loans as well, often in sums smaller than traditional banks are willing to lend to neighborhood stores, restaurants and coffee shops.

On the consumer side, Square launched Cash App, originally called Square Cash, in 2013. Since then, the app has seen enormous growth, jumping from 7 million to 15 million users in 2018 alone.

Square credits its success to a mission of economic empowerment for everyone from a small business owner to a major retailer. But critics say the company may have lost focus, be overvalued, and struggle to sustain growth if the U.S. faces an economic downturn.

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How Square Makes Money

[streamyoutub]

Cnbc, you guys are one of the biggest in producing this sweet content on case studies for us readers/viewers to digest. Keep up the great work!

[kathan]

*It requires a full-time CEO*


Elon Musk: Am I a joke to you?

[streamyoutub]

Pretty sure square was one of the most affected companies by the removal of the headphone jack! 😂

[mykalimba]

You missed the opportunity to say "they cornered the market".

[williestroker]

after the 08 depression we are becoming more financially literate and these small businesses are given so many more opportunities to thrive

[jeremiahmendoza]

So that’s why the headphone jack was discontinued. No fair!

[AktienMitKopf]

and then came covid... and the stock soared

[josephwong]

Square branded their products like Apple: sleek, minimalist and white...Great job to subconsciously create trust in the users.

[oscarruiz]

“i requieres a full time ceo”
elon musk: hold my rocket, and tesla, and neural interface, and solar panels, and tunnel

[syncsummit]

As a merchant, I greatly prefer Square ver PayPal. They are much more friendly to the businesses they work with, and their rates are similar to stand-alone merchant processing but provide many more benefits. It's hard to understand why they are such a lackluster stock, considering their size, profit and customer base.

[Super_K]

The headphone jack is now gone in all phones ohhh 2019!!

[PositiveInvesting]

It’s incredible to see how many companies downtown use Square. Going to be a possible acquisition target in the future I’m sure!

[likhithramesh]

In India we use UPI(Unified Payment Interface)....linking our cards to an UPI ID...do all transactions are done bank to bank...We just scan and pay...No physical device setup cost...Just smartphone does the work.

[MoMo-sftj]

Small companies staying alive thanks to small loans that banks would never do, made me think of the Yes Man movie, brilliant idea!

[understance]

Respect to the man for doing the IPO with his mom.

[supercharger]

I would buy shares in CNBC just to get these amazing informative videos. Great.

[mikeylejan]

I didn't even know that this company existed lol.

[maxdondada]

Foolish analyst are driving the stock price down that’s all

[RICKY]

It’s obvious how they make money. All the fees they keep from every transaction

[andy_]

I’ve seen Jack Dorsey sitting five feet from me when I had a high school internship at square hq in San Francisco
I essentially walked by a few billion dollars