Square, the company that provides payments and other business services to merchants, is today taking another step in its gradual expansion outside of the U.S. Stand — one of Square’s key pieces of hardware, turning an iPad into a point of sale system — is launching in the U.K.
It will sell for £64 (+VAT) and will be sold alongside existing products that Square offers in the U.K. — Square Reader, its Point of Sale app, Instant Deposit, Virtual Terminal and Cash app. (Square Register, the company’s all-in-one product for larger businesses that sells for $999, is not yet available outside the U.S.)
The move comes just over a year after Square launched in the U.K., its first market in Europe, and also on the heels of a big move from two of its biggest competitors: last week, PayPal said it would acquire iZettle, sometimes referred to as “the Square of Europe,” for $2.2 billion.
Those two developments underscore both the challenges and opportunities ahead for Square.
On the one hand, the company is tapping into a big market opportunity by creating services that cater to the often-overlooked small and medium business sector — and the Stand, which extends a tablet into a more interactive payment terminal, plays into that.
On the other hand, the consolidation underway between iZettle and PayPal points to how stronger competitors — PayPal’s market cap is nearly four times that of Square — going after the same business as Square, will put pressure on the company. (As a point of comparison, iZettle’s tablet stands range in price from £49 to £99.)
Square may be smaller, but it has picked up a lot of loyalty for its services and innovations. Square says that today the company has two million business customers using its products globally. It doesn’t break out numbers by geography or product. But given how many merchants use more than just a phone to take payments and run other sales software (a phone being the basic building block of Square’s original card payment processor), it was a much-requested feature.
“Square Stand was built to provide sellers with a unique and beautiful solution that makes taking in-person payments simple, elegant and fast,” said Jesse Dorogusker, Square’s hardware lead and designer of the Stand. “Sellers in the U.K. have been asking for a full countertop solution for their businesses since we first introduced Square.”
Despite its popularity and how it seemed to appear and take off amid a surge of smartphone and tablet adoption and use in the U.S., Square has taken a very deliberate route when it’s come to growing outside its home country, where payment methods, regulations and languages might all be different. Today, the company has operations in the United States, Canada, Japan, Australia and the U.K. It also has an office in Ireland but not active payments or other business.
Asked about where Square might like to go next, the company has remained mum.
“Nothing to share on that front,” a spokesperson said. “We are just getting started here in the U.K. and iterating fast to bring new services to market. Since we entered the U.K. market in 2017 we have continued to bring our U.K. sellers important products at a steady pace.”