Speculations had surfaced earlier around PayPal’s interest in acquiring mobile payments company Square. With PayPal splitting from eBay, rumors had sprung up that the new PayPal CEO is in talks with Square for acquisition possibilities. Jack Dorsey, CEO of Square, used Twitter to counter the rumors denying the claims. Keith Rabois, co-founder of PayPal and former COO of Square, also denied the claims through his tweet.
Here are the tweets from the two executives:
FALSE: PayPal Is in ‘Early Talks’ to Acquire Square | Bank Innovation http://t.co/2mLk383Uy6
— Jack (@jack) October 14, 2014
@mdudas don't believe what you read. Every assertion re Square in that article is false.
— Keith Rabois (@rabois) October 14, 2014
We don’t think that Square is in a position that they would want to be acquired anyways. The company recently raised $150 million in funding. This will help the company maintain its position as a strong independent business. With fresh funding, the company would look to empowering the industry with more & better developed tools. Even in the current scenario of a highly competitive market, Square will eventually further upgrade its service portfolio to maintain its share.
Last month, it was revealed that Square is building a register that will allow companies to accept Bitcoin as well as Apple Pay. Square will be in a good position playing along with Apple Pay and integrating Apple Pay and other new payment mechanisms into its point-of-sale devices. Square is also coming out with new products serving other areas of commerce.
Square came up with “Square Capital”, a money lending service aimed at small businesses. Then there’s “Square Order”, the mobile app for ordering food from restaurants. Earlier this year, Square also launched “Feedback”, a service that lets businesses get feedback from customers through digital receipts. Square recently announced a new feature as an upgrade to its mobile payments app, Square Cash. The new feature allows users to send or request money using Bluetooth Low Energy (BLE) technology.
Square’s current valuation stands at around $6 billion. Jack Dorsey does not seem to be the kind of entrepreneur who would simply sell off his ventures. Otherwise, he would have also sold off Twitter, his other venture which now currently stands at a much higher valuation. Square has seen tough times in the past with losses to the company rising above $100 million. But the current phase of the company shows a new roadmap with more positive outcomes in the near future.