Square Inc., the mobile-payments company founded and led by Twitter Inc. interim Chief Executive Officer Jack Dorsey, plans to hold its initial public offering in the fourth quarter of this year, people with knowledge of the matter said.

The timing is subject to change depending on market conditions, some of the people said. Square has filed confidentially to go public, people familiar with the matter said in July.

Square is pressing ahead with plans for its IPO even as Twitter’s board is considering whether Dorsey will remain CEO of the social-media company, where he is a top internal candidate for the role. If the board picks Dorsey, it may have to go back on a statement made in June, which said directors would only consider a “full-time” leader -- not one who has a CEO job elsewhere.

In interviews, Dorsey hasn’t ruled out either position. Meanwhile, he has been reassuring investors and key employees that he will remain CEO at Square, according to people familiar with the matter.

Aaron Zamost, a spokesman for San Francisco-based Square, declined to comment.

Working With Banks

During its confidential IPO filing process, Square has been working with Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co., people familiar with the matter said in July.

The decision to go forward indicates that last month’s market volatility hasn’t dampened plans for IPOs. First Data Corp., the payments company with investors led by KKR & Co., intends to seek at least $2.5 billion in what would be the biggest U.S. IPO this year, people with knowledge of the matter said Wednesday.

Under the Jumpstart Our Business Startups Act, companies with less than $1 billion in revenue can file for an IPO with the U.S. Securities and Exchange Commission privately and work out the details with the SEC outside the public eye.

At this point, the timing of Square’s IPO is more contingent on market conditions than whether Dorsey remains CEO, according to one of the people.

Square’s advisers had been making plans for what to do if Dorsey left, people familiar with the matter said in August. If the company had to go public without Dorsey, 38, bankers would make the argument that Square was in such good shape that he would be able to leave the company without affecting its prospects, a person familiar with the matter said at the time.

Square processed $30 billion in payments from its millions of merchant customers in 2014, and has since expanded into new areas like business lending and payroll processing.

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