Square - a report from the field

My wife and I went to the Farmer’s Market in Union Square in New York City today. We used a charge card at five of the booths. They all used Square. One of the guys said that he does a lot more business since he started taking credit cards. He says he knows about 60 other stall-holders, and all who take charge cards use Square.

I’m aware that it’s a minuscule sample size, but if only one in five was using Square, I’d worry, or if someone said “I used to use Square but switched to ABC because…” I’d worry.

Just thought I’d share the observation.

Saul

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I’ve had very similar experiences at Farmers markets and coffee shops in Washington state, as well as here in Atlanta.

The store owner of the shop below my old office said switching to Square made their lives and business so much simpler/better.

All subjective of course, but the sentiment is the same.

Jack Dorsey sure does creep me out though.
https://www.cnbc.com/2019/04/08/twitter-and-square-ceo-jack-…

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I was also at a Cuban restaurant in NY a few weeks ago, and their credit card machine stopped working and asked if we could go to an ATM. They DIDN’T use Square. Guess we will not be going to that restaurant again.

Dominic

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It is the same at my local farmers market in small town America in the Shenandoah Valley.

The local farmers primarily use Square. One was using PayPal though. I have rental properties and a young guy who did work for me last year also used PayPal on his phone.

We also have some newer restaurants, farm to table types, and quite a few of them are using Square and a tablet instead of using a cash register.

When I get my hair cut, I pay with a CC and the lady uses Square on her phone.

A plumber I use was using a credit card terminal. His dog recently chewed up the cable to it. He has Square now.

If Saul is seeing Square in NYC, and I’m seeing Square in small town America, then my guess is Square is all over the US.

I was last in the country of Panama in 2016. I hope to return within the year. I’m curious if I will see Square in wide use there.

Fool on,

mazske

Long SQ

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Every time a new restaurant or store opens, when I go I see what they are using for POS. A new one that has shown up is Cake, a division of Sysco foods. This is one to watch because Sysco already has a relationship with the restaurant from food delivery.

Jim

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Every time a new restaurant or store opens, when I go I see what they are using for POS. A new one that has shown up is Cake, a division of Sysco foods. This is one to watch because Sysco already has a relationship with the restaurant from food delivery.

Jim

I worked in SYSCO’s IT department a long time ago. If Cake was developed in-house I don’t think we really have much to worry about. I’m a big SQ fan and have held it since July 2017. 7% of my current portfolio.

Good investing,
Ron

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Looks like SQ has the farmer’s market covered. Every time I have been going to restaurants during my travel across different cities in the US, I see the POS they use. I mostly see Clover. On a few occasions I have asked if they tried SQ. Answer has been mostly it is “the same”. We know that is not correct, the SQ ecosystem is a lot bigger. Seems to me SQ has a large TAM.

A SQ stock owner.

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Looks like SQ has the farmer’s market covered. Every time I have been going to restaurants during my travel across different cities in the US, I see the POS they use. I mostly see Clover. On a few occasions I have asked if they tried SQ. Answer has been mostly it is “the same”. We know that is not correct, the SQ ecosystem is a lot bigger. Seems to me SQ has a large TAM.

– A SQ stock owner.

As long as we are comparing notes on personal experiences.

I notice SQ in all the same place mentioned. But Paypal seems to be more on a website checkout, fantasy sports buyin between two individuals or reimbursing a coworker for lunch (Venmo for this too).

I just noticed they both offer a cash card.

Also noticed the small deli at my employer recently switched his SQ card slider to an SQ card insert reader. He is thrilled bc he seemed to dislike the slider’s multiple attempts to get it right.

Christian

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I live in Miami and had a very similar experience. One of the biggest events during the year is Art Basel, which is a huge week long art festival.

During this time the convention center turns into a massive art museum/gallery and there are also about 5 huge air conditioned tents constructed throughout the city that are converted to museums/galleries too.

Around the city there are pop up clubs, lounges, food trucks, and many other events. I was so happy to see the majority of vendors using Square.

It was especially great to see 1 nightclub that had 3 bars and have 4 Square stations at each bar.

Recently I have seen restaurants using the POS Toast.

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They’re making a move here in London.
Went to the London Coffee Festival 10 days ago and they had a stall there. No other POS company was there. Although they have a couple main competitors here (mainly izettle), they’re definitely starting to make a push. I think previously they’ve avoided areas internationally that had competition, but I’ll be more on the lookout to see if they displace izettle in the numerous coffee shops I go to. I’d be surprised to see them displace izettle in any coffee shop that uses them, but will keep a look out.

I have a no-brainer love for Square.
However, I bought at the almost all-time highs for Square and last Friday when everything hiccuped, I sold my small amount of shares to buy into the hiccup.

There is a victim side to “If you like the stock, just buy the damn thing”.

Someday I will return.

The guy who comes to my house every fall to clean and maintain my furnace uses Square. My acupuncturist uses Square. All good, but I think what will revitalize SQ will be positioning themselves as a significant lender to their existing small business customers and introducing a SQ Credit Card. They are already making inroads as a lender. I’m not aware of plans for a credit card but consider that VISA is valued at $348 billion, SQ at $31 billion. The potential is enormous.

As for Jack Dorsey, he wouldn’t be the first oddball to build an iconic brand.

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I’m not aware of plans for a credit card but consider that VISA is valued at $348 billion, SQ at $31 billion. The potential is enormous.

VISA has no credit risk, that’s the big plus. Like some Shakespeare character said, “Lending loses both friend and money.”

Denny Schlesinger

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“Jack Dorsey sure does creep me out though.
https://www.cnbc.com/2019/04/08/twitter-and-square-ceo-jack-…

Actually this just made me like him more. He is not a weirdo, most just never tried what he does

MK76
who loved
-fasting in the Amazonian jungle alone in a wall-less hut
-biteing the shark tail in the Galapagos
-climbing the Macchu Pichu on foot
-walking the El Camino di Santiago
-trekking wild mountain gorillas
Etc, boy these are fun

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I like his wellness habits…especially meditation…getting quiet and listening…not to the chatter about doing this and that but being open to thoughts as they pass by and letting them go…counting breaths and guided meditations are available on youtube and apps, and I have CD’s from classes I took on meditation.

All those habits he has have merit and it works for him. :slight_smile:

Lucky Dog

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Sorry for the OT comment.

I own SQ for what it’s worth.

LD

I see Square Payroll will grow quickly. It’s much cheaper than its competitors. For a self employed, single employee, it’s $34/month ($29 base fee + $5/person). For PayChex, after the first year promotion, it will rise to $150/month. If one million small business sign up, it will generate around half billion revenue (lots of them have more than one employee). It will expand their customer base that they can cross-sale to.

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Square is ubiquitous in my city, every small business uses it (including our farmers market).

Also, Dorsey’s lifestyle “hacks” are similar to mine. Makes him interesting in my book.

My garden club holds an annual plant sale. We increased our sales 15% by accepting credit cards. Square is easy and compatible with iPhones and Androids. It processes swipe, slap and dip. For 2.75% and no annual subscription or fee, it is a bargain and we just use it once a year.

Just a real easy addition to cash and checks.

Mark

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