Mobile payments company Square under pressure
One of the big players in mobile payments stateside is Square. The CEO is Jack Dorsey who is also Chairman of Twitter having founded both companies.
Gross Payment Volume (GPV) for the first quarter was $10.3 billion, up 45% year over year. Adjusted Revenue was $146 million, up 64% year over year, and Adjusted EBITDA was a loss of $9 million, a solid improvement from a loss of $20 million in the first quarter of 2015. Total net revenue was $379 million, up 51% year over year. You can read the full letter to shareholders here.
One thing that has sat in Square’s favour is that they early on struck a deal to be the mobile payments provider for Starbucks giving them strong visibility across the US. But that agreement is due to expire in the third quarter of this year and won’t be renewed.
There were great hopes for Square when it first launched and it has been well backed and seen some success but it does demonstrate how tricky it is to build out these new payment technologies from scratch without the backstop of a big bank or organisation.