View profile

All The Fintech - 5.3.18 - On Square and Full Stack Processing

May 3 · Issue #25 · View online
All The Fintech
Square recently announced their acquisition of Weebly, a website creation platform, for around $365MM. The Weebly acquisition seems to demonstrate a focus on international expansion and longtail e-commerce, which also increasingly puts Square in competition from a processing perspective with offerings from PayPal, Stripe, and Shopify. 
Meanwhile, just last month Square also announced their acquisition of Zesty, a corporate catering startup. (Side note, both Weebly and Zesty were Y-Combinator companies although that’s probably more of a reflection of YC’s increasingly larger reach in startup investing than anything else.) The Zesty acquisition was messaged as a method to increase Caviar’s corporate ordering business as Square continues to push into the restaurant vertical. 
The money to be made in payment processing isn’t in the processing itself, but rather the service layer that one can build on top to charge a premium. For example, Stripe layering on fraud tools (w/ Radar) + business intelligence (w/ Sigma) + billing to justify charging significantly above interchange. Square helping brick and motor companies easily accept payments in store (via dongle or with their own POS), offer rewards, schedule appointments, and now launch online. What’s next, shipping fulfillment? Delivery via Caviar for physical goods? The era of the full-stack processor is upon us, which also makes Amazon an very interesting entrant into the market.

The So What
Amazon Offers Retailers Discounts to Adopt Payment System - Bloomberg
Goldman Sachs to Open a Bitcoin Trading Operation - The New York Times
Cryptocurrency exchange Coinbase recently tried to value itself at $8 billion - Recode
A New Crop of Fintech IPOs Will Face Skeptical Investors - Bloomberg
Telegram Messaging App Scraps Plans for Public Coin Offering - WSJ
Cash App
Introducing Cash Boost! Pick a place or category and get instant cash back every time you use your Cash Card ☕️🍔🌯
Zelle places its bets on corporate-customer transactions
Stripe expands its Atlas startup kit to let founders form LLCs – TechCrunch
SoFi's Former CEO Harnesses the Blockchain for Home Loan Startup - Bloomberg
Did you enjoy this issue?
If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue