Re/code recently spoke with an inside source at financial online payment startup Square. Over the past few years, the company has skyrocketd in popularity and is actively upsetting the credit card industry with its simple, mobile payment services. We’ve reported on a lot of the company’s activities in the past and are interested in the future of Square just as much as the next tech guy. According to the unnamed source that spoke with Re/code, Square is a hot commodity for bigger companies, but isn’t sure it wants to be bought up by just anybody.
The article accurately describes Square as an ambitious startup that has plans to “disrupt a massive industry of powerful old-school players.” The company has rewritten the way small businesses build their finances. Nearly every mom-and-pop shop that I go into these days uses Square to ring up customers.
I have personally used it at comic book conventions to ring customers who want to buy stuff, but have run out of cash. The service is very convenient and the pricing is relatively competitive with major business credit service companies.
In discussing the future of Square with the insider, Re/code discovered that Google has recently been trying to woo the company’s founder and CEO Jack Dorsey. Dorsey and Square’s Board of Directors does not appear to be interested in what Google is offering. According to the source, “a sale to Google would disappoint Dorsey.” Apparently, when Google tried to acquire Twitter, Dorsey’s former company, it left a bad taste in his mouth. “Jack does not want to sell to Google” one source was quoted as saying.
According to Re/code, Dorsey also believes that Square’s design aesthetic matches up more with Apple than Google. In fact, Square’s hardware chief Jesse Dorogusker worked at Apple for eight years.
Unfortunately, this love triangle ends with Apple. While Square may be more inclined to accept an offer from the iPad maker, Apple is not likely to be interested in what the company has to offer. Apple is not looking to move into the offline payment market, but rather is looking for ways to use its software and mobile devices to make online purchases easier and more integrated for customers. Sources familiar with the issue say that Apple has “soured on the idea of making an acquisition to Square” for now.
Frankly, I’m glad that Apple doesn’t want Square and that Square doesn’t want Google. The small startup company has the potential to rock the financial industry with its forward thinking and innovative design. I’d much rather see Square take over than be taken over.