Ask the merchant what percentage rate he pays when using SQUARE. If you are a merchant doing $100,000 in transactions a month it doesn't make sense to pay 2.9% on every transaction thru SQUARE when you can buy a PAY terminal for $200 and then shop for the best processing rate around 1%-2%. It's a no brainer for those who have businesses with large volume. For the mom and pop guys SQUARE'S convenience is probably well worth it. I just don't think SQUARE is going to be as long lasting as everyone has a assumed they will be. Merchants are too smart to pay the SQUARE processing fees for long..... they will see it as a novelty product and move back to the much lower rates with a non SQUARE processor and save lots of money over the long run with their Verifone terminal... this is from a guy that's been down that road. Just my two cents.
Square is 2.75% flat rate and you get a free mobile swiper. This is a good deal for low average ticket merchants that sell products below the $20 range and are mobil. Above that average ticket, yes it is a better deal to purchase a refurbished terminal like a Verifone, and find a good processor like me to handle your transaction at a cheaper rate of 1.62% and a .20 Per transaction fee. The problem with Pay is that sales people are going to sell the equipment that is the cheapest to get the job done, and get the merchants processing. Why would I buy a $500 New Verifone terminal when I can buy a $200 refurbished terminal out there that does the same thing. That has been my business model for 20 years. I am still in business, regardless of which card terminal manufacture I use. Square is actually my competitor and who I worry about more, since they do their own processing or through a sponsoring bank. But usually the low ticket merchant are a bigger pain to deal with, than an established merchant that sells $500 gas grills, or Internet merchants. Bottom line is going after high volume merchants for a steady monthly residual base. I have seen it all. So I relate my experience. PAY needs to buy a Processing company for re-occurring monthly residuals and stop relying on equipment sales only.
dude, u had a good call hats off for that.
right now pay is bottoming and barring any accounting surprises, its not going to see new low ...
its pretty immature to compare kodak and digital photography with pay vs square.
fyi pay has 30% revenue coming from services(not from hardware sales) and pay has lot of revenue from international, square cannot succeed in asia.
ingenico has 2X market cap than pay's current mkt cap...same bussiness.
square is 2x more valued than pay...with no profit...)