Square Partners with SAP

Another partnership that integrates Square with a business software platform vertical:

In Square Inc.'s (NYSE:SQ) second-quarter conference call, CEO Jack Dorsey promised that the company was constantly looking for ways it could “accelerate and deepen” its offerings to its customers. One of the ways the company has recently focused on in order to accomplish this goal is to embed its payment processing into existing business software platforms through partnerships. Earlier this quarter, Square partnered with Eventbrite, the popular live event-planning platform. More recently, Square announced another partnership, this time with SAP SE (NYSE:SAP), the German-based enterprise application software provider.

Under the terms of the deal, announced on Square’s corporate blog, Square’s payment processing and financial services will now be integrated with SAP’s Business One platform. SAP Business One is a software platform that provides small and medium-sized retailers with a variety of back-office business services, including accounting, project management, and human resources. With the integration of the two companies’ services, businesses will now be able to view their sales and payment data with “one holistic view.”

The sales page of the combined services also boasts that customers will have access to real-time business data analytics, the capability to manage a business from multiple locations, and, of course, the ability to accept many different types of payments at the point of sale, including Apple Pay and chip cards.

Read more at https://www.fool.com/investing/2017/11/06/square-partners-wi…

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Wow. Anything from SAP is expensive, and I would be surprised if most of the Square customers would be willing to pay that kind of money for back-end services. Especially those who are already griping about the increased credit-card fees.

This is a move to increase Square’s potential with mid-sized businesses (at least those who can afford a SAP product!). They are definitely targeting a move up the food chain. Mom-and-Pop businesses, who are the core of Square’s customer base, will not be interested in this!

Tiptree, Fool One guide, no position in SQ

I used to sell Great Plain, now Microsoft, back end accounting software.

SAP is basically for the big boys, so SQ partnership with them most likely will effect only the largest of SQs customers. Most likely SQ will need to do this with more enterprise software companies so they can market to big retailers.

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