Jack Dorsey fintech Square Spain launch - Square, the' fintech 'of Jack Dorsey, launches in Spain its" all in one " service of payments for companies with an aggressive price campaign to steal customers from banks.
Square, the fintech founded by Jack Dorsey, has just landed in Spain.
The company has come to our market with all its arsenal of payment services offered for companies that include both management software and devices to make payments.
Spain is the third European country where this American company begins to operate after having launched in Ireland and France.
The offer seeks to be an "all in one" of services to attract SMEs on their path to digitalization.
Jack Dorsey fintech Square Spain launch
"We want to offer financial services to small businesses so they can focus on their business," said Jason Lalor, Chief executive officer of Square Europe, at the business launch event.
Lalor stressed that they arrive in Spain because it is during digitalization and that the figures show how payment with cards has grown strongly in these years of pandemic. This coupled with a large business network of SMEs has made them launch their services here.
Fintech was born in the United States in 2009 around a small card reader that sought the democratization of POS (point of sale terminal).
Since then, the fintech, created by the founder of Twitter, has grown exponentially generating a business around payments with physical tools, but also with management software.
Square has now become a division of the parent company that changed its name to Bloq a few months ago with the goal that its branded umbrella would include all of the company's divisions as the blockchain and crypto assets part. Bloq is also immersed in one of the largest buying operations within the fintech field as it is in full merger operation with the Australian Afterpay (which also operates in Spain after having bought Pagantis).
Unknown goals of Jack Dorsey fintech Square Spain launch
In its landing in Spain, Square does not give figures of goals in terms of customers or turnover. "We just launched," Lalor simply said when asked about objectives. Despite not giving target data, the fintech has launched an aggressive pricing campaign for its products offering the simplest POS for free in a limited promotion.
The operation of Square's business model involves selling physical products, payment hardware, which replace a traditional bank POS, and then let use for free most of the functionalities of its management software, which allows, for example, integrate the stock of the physical and online store. What Square charges is a commission for each purchase transaction on both the physical and online channels.
The three terminals launched by this fintech in Spain are Square Register, Square Terminal, and Square Reader. The latter is a small square device that serves as a card reader connected to a smartphone and that normally has a cost of nineteen euros, but that at its launch is free.
For its part, Square Register will have a promotional price of 299 euros, usually 599 euros, Square Terminal will have a price of ninety-nine euros compared to the usual 165 euros, and Square Reader will be completely free (usually 19 euros).
On the other hand, the commission Square charges for each trade transaction varies depending on whether it is a physical or online transaction. Thus, the physical commission is 1.25% of the purchase added to 0.05 euros. For its part, the commission for online payment processing is priced at 1.4% of the operation plus 0.25 euros per transaction for EU cards.
The arrival of Jack Dorsey fintech Square Spain launch
The arrival of Square comes at a time when banks are accelerating their digitization processes to cope with the arrival of technology companies. At a time of low interest rates, commission income is one of the keys for these entities that can see how the launch of a large fintech like this directly affects one of their most important income lines.
"This is something that is not in the market, "Lalor said when asked about the competition in a heavily banking market like the Spanish, to ensure that they are aware that" it will not be easy "but that they" trust " in their product. The manager stressed that his services allow the integration of the management of several legs of financial management.
Now, there are already some shops that have been able to try the services of Square prior to the launch as is the case of the craft beer store Hop Hop Hurrah, which opened a few months ago in the Barceló market in Madrid and that are currently developing their online store.
"Having a POS system with integrated payments and solutions for any sales channel has transformed the way we manage our business, making it an easy and fluid process. We are happy to have been able to switch to Square and feel much more confident in our ability to grow. We know that we will never miss any sale, and we can focus our attention on the future, " explained Miguel Gil, owner of the store with his partner.
For its part, the Tallón bakery in operation in Aspe (Alicante) since 1950 first as a workshop and later with its own store has also tried the solutions of this fintech. For them, as they have explained, the key to these devices has been that they are simple to use and that they allow them to base on data the "intuition" with which they have worked in recent decades.
# Jack Dorsey fintech Square Spain launch #
