According to the New York Times, Square is introducing two more SMB-facing offerings today: instant deposits and protection for disputed purchases. This would bring to roughly 12 the number of distinct products or services Square sells to SMBs.
I have argued elsewhere, before that Square is well positioned to move more aggressively into SMB marketing services as well if it wants. This is somewhat analogous to what GoDaddy has done, moving from domain registrar and webhost to full-service marketing platform.
Below is the list of current Square offerings:
Square has tried to play both sides, offering (the now defunct) Square Wallet and Square Order to consumers alongside the expanding range of SMB products and services. Since both sides share a common infrastructure the company could continue to do both.
But it appears that a shift is underway, favoring SMB services. Square would appear to be out of the consumer mobile payments game, with that market poised to be a competition between PayPal, which just acquired Paydiant, Apple, Google and Amazon.
Square Capital, its SMB lending program, has “extended more than $100 million in capital to more than 20,000 merchants,” according to the Times article. Square is currently valued at roughly $6 billion, which makes an acquisition unlikely. But to get to an IPO the company will need to build higher margins and more momentum.
The company told the Times it processed more than $30 billion in payments in 2014. It makes between 2.75% and 3.5% per credit card swipe based on the method of entry. That suggests 2014 revenues of more than $800 million.
It has not formally released the number of SMBs it counts as customers; however it is in the “millions,” according to previous statements issued by the company.