Report: Square Tests Giving Merchants Money, May Delay IPOBy: Chris Crum - February 25, 2014
According to a report from The Information, Square is testing giving merchants “thousands of dollars” in capital “to help them grow,” and is “considering raising another round of funding” that would delay an IPO.
The company is also looking to offer custom rates to more merchants in an apparent bid to get more bigger brands using its services.
Earlier this month, Square announced its first grocer partnership in the form of a deal with Whole Foods Market, though the chain isn’t fully committing to Square for all its needs. It’s only (at least for now) using Square Register and Square Stand at interior sandwich counters, juice and coffee bars, pizzerias, and beer and wine bars.
Square also launched a new feature for its Square Cash product this month enabling users to request money via email.
A report from The Wall Street Journal back in November indicated that Square was eyeing an IPO for this year, having held discussions with banks, including Goldman Sachs and Morgan Stanley.
While Square isn’t officially commenting on the new developments reported by The Information, the publication says its info comes from “people familiar with the effort.”
Image via Square, Twitter