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Square (SQ) is working on building an iPad payment terminal that will enable shoppers to access tap-to-pay more effortlessly, as reported by Bloomberg. It is not known when the upgraded device will be available to retailers, as there was no comment from Square on this report.
The new point-of-sale terminal enhances the existing Square Stand model by incorporating tap-to-pay technology. Currently, the Square Stand runs on a magnetic strip reader, but needs a separate device to accept phone or credit card payments. The updated version of the Square Stand makes the payment process more seamless. (See Square stock chart on TipRanks)
Per Bloomberg, iOS developer Steve Moser discovered that files inside Square’s iPhone and iPad compatible app reveal the blueprint of a device redesigned to fit an iPad and a tap-to-pay sensor together. Moreover, a few codes alongside the drawings also suggest the presence of a built-in card chip reader in the terminal.
Moser also found codes of Square’s unannounced plans for business checking and savings accounts, which it had revealed earlier.
Recently, D.A. Davidson analyst Chris Brendler reiterated a Buy rating on the stock with a price target of $275, implying a 13.9% upside potential to current levels.
Brendler expects revenues for Square’s Seller app for businesses to outpace consensus estimates in the second quarter of 2021. While analysts predict that payment volume on the app will rise 64% year over year, that would actually be a drop from the growth rate in the first quarter, Brendler pointed out.
Consensus among analysts is a Moderate Buy based on 17 Buys, 5 Holds, and 1 Sell. The average Square price target of $284.9 implies 18% upside potential to current levels.