Jack Dorsey, Square CEO (pictured), said the mobile payments firm is now attracting customers of all sizes, as its Q2 figures showed impressive revenue growth.
Traditionally associated with small sellers, Square is drawing their larger brethren too, Dorsey said on a call with analysts.
“So obviously we started with the smaller base and we’re seeing more and more appetite from the larger sellers as well, and specifically multi-location sellers, and we’re finding that they actually want the same things that we’re seeing from the smaller sellers,” he said.
This is a necessary change in strategy since there is a growing realisation in the mobile point of sale market that small traders alone are not sufficient to build a viable, long term business.
Larger sellers are drawn by three factors, Dorsey said.
Firstly, ease of use, which enables companies with more staff to train them on Square “in minutes”.
Secondly, the firm has pulled together payments with additional services into a single package. Large companies prefer this approach to stitching things together from multiple vendors.
Finally, they like the fast access to capital which Square offers.
Gross payment volume (GPV) from larger sellers is 42 per cent of the total, compared to 37 per cent a year ago. In Q2, Square processed $12.5 billion in total GPV, an increase of 42 per cent from the second quarter of 2015
Total net revenue was $439 million, up 41 per cent year over year. This includes revenue from a contract with Starbucks, which is set to expire in Q3 2016.
Adjusted revenue, which excludes Starbucks, increased 54 per cent year over year to $171 million. This is comprised of $130 million in transaction profit, $30 million in software and data revenue, and $11 million in hardware revenue.
Net loss in Q2 was $27.3 million, a slight improvement from the $29.6 million net loss a year earlier.