Dorsey: Square Wants to Make the Charge Card Simple

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Sept. 17 (Bloomberg) -- Square Co-Founder and CEO Jack Dorsey discusses Square's expansion, impact on small businesses and competition with credit card companies. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Our taxi driver from the airport was using square.

He loves it but is not supposed to be using it.

For whatever reason, the taxi commission, how do you deal with those issues given unr -- are in all 50 states?

As long it is driven by people that are using it and they are going to city hall talking to the regulators saying this is something that is important for my business.

It is important because it is growing my business.

Are you part of that discussion?

We support it.

We have had local government there.

In st.

Louis we had the mayor.

We had a bunch of city counselors.

They were engaged with the conversation.

We would love to work with government to change these conversations and make it easier for people.

You started out focused on small business, coffee shops, taxi drivers.

You have added agribusinesses like starbucks.

Where are you seeing the most adoption?

In the small brick-and- mortar.

Who are growing from an individual to multiple employees and one location to multiple locations.

So we have tons of retailers and coffee stores and salons and all of these other things that started small but are now growing.

More and more we're seeing a lot of brick-and-mortar's. a lot of neighborhood stores use it.

And we're getting a lot of value because it is one system.

One ipad in the business grows and then they have to cash registers and then they have three.

And then they want to sell online so they flip the switch and we built a page for them and they can sell online anywhere across the nation right away.

What is the latest number on users and how much money you process?

We have millions of people activated -- you can tell me how many millions?

And asked -- the last number was over 4 million.

That is inclusive of brick-and- mortar merchants.

We process 15 billion annualized from small merchants.

That is not with small merchants.

It is a very large number.

And we see it growing.

You charge 2.75% but i understand for smaller transactions under $15, do you lose money?

Our philosophy is trying to accept whatever form of payment comes over-the-counter.

Cash, a check, a charge card.

We want to make the charge card simple so you never have to think about the interchange.

This degree of rates you have to pay as a merchant.

So we hide all of that and say you paid 2.75%. your money is in the bank accounting next morning.

That is all you have to worry about.

And then in the background, we have to do whatever we have to do for those cards.

We have been able to build a growing business.

Long-term, you do not see this as a challenge?

Had the overcome the money you lose?

Technology helps us reduce the cost in the system.

We want to continue to drive down the cost.

That is just better technology, understanding risk and fraud.

That is where a lot of the charge comes in.

For the bigger merchants like starbucks, is that a focus for you, signing up the bigger merchants?

The greatest thing is starbucks came to us.

We don't have a partnerships team.

Starbucks came to us and said we want to you square because you focus on the customer experience.

We know that drives more people to our stores.

They are using the application all of our other merchants are using.

That is meaningful to us.

We want to scale from small to large.

This is a cutthroat business.

Hard to compete with the credit card young -- companies.

Would you ever give them a break on 2.75? we always want to drive that down.

We do not see ourselves building a payments company.

Payments is just one part of it.

We think there is value we add around the analytics, the data, around simple things to enable you to build your business and make decisions.

Whether you are very large or small, these things are meaningful.

It is more important than just the payment.

As you said it is about the user experience.

You know you're getting a seamless experience.

Some of your competitors are integrating with point-of-sale providers and the hardware makers.

Why not do that?

We are always looking at those opportunities but we want to provide something that is seamless and easy and that is comprehensive.

A lot of our competitors are looking at various parts of the system.

Someone is building the credit card terminal, some in his building loyalty and coupons, analytics.

We just decided that was not for us.

There are all those scenes and it slows down the transaction and it slows down commerce.

If you build it and you and you can speed up commerce and have more of it.

You can retain those customers as well.

Right we see square hardware in starbucks?

Our focus right now is on the smaller folks, those goading -- going from one store to 10 stores.

That is what we're focused on.

This text has been automatically generated. It may not be 100% accurate.


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