SQ: Survey says SQ is sticky!


I’ve been saying for a while that SQ is delighting customers and that its products and services offer customers so much value that its difficult to convince them to switch. The above link is to a Baron’s article that sites a study that corroborates this idea.

Square’s rivals have been trying to undercut the company on price, but they might not be having much success. Among the “larger” businesses that Square serves (meaning companies that do more than $200,000 in annual sales), 60% have received lower-price offers from Square’s competitors, according to a survey from KeyBanc Capital Markets. But 80% say that they plan to stay with Square for more than a year

…KeyBanc’s Josh Beck writes that there was no “silver bullet” cited by survey respondents as the chief reason why they want to stay with Square, though he “did detect a common theme around ease of use, transparency, system integration, and innovation as rationale behind the initial adoption of Square.” Going forward, sellers indicated an intention to purchase more of the company’s add-on services, which would help Square further insulate itself from competition.

Big Picture: Square has created a stickier business by offering lending and payroll services to the small businesses that already rely on the company to process payments.