Back to Square: Discover the Evolution of Block
A few years after co-founding Twitter, Jack Dorsey discovered his friend Jim McKelvey was facing a pesky problem. Jim was deadlocked with a $2,000 bunch of glass faucets because he could not accept credit cards. Who’d know the solution they came up with would become a multi-billion Fintech business? That’s how it happened.
??? At the time, Jack and Jim started with a simple and square (pun intended) offering for small businesses: a tiny plastic device you’d plug into a smartphone or tablet to accept credit card payments easily.
Over time, as Square evolved and experimented, it expanded its offerings to include various other financial services, such as invoicing, payroll, and lending. The company also began to develop its own software and hardware solutions, such as a point-of-sale system and a business management platform. Step by step, Square shaped itself from a simple payments company into a full-fledged fintech - from a square to a solid block.
This transformation added volume to the company’s capital too. In Q4 2020, Square saw a whooping 52% year-over-year (YoY) growth in gross profit, from $794 million in Q3 to $804 million. Total net revenue for Q4 2020 reached $3.16 billion, jumping 141% YoY.?
Can you believe Square's stock price upped more than 2844% within six years of its IPO?
As we already mentioned, Square's progressing profits have much to do with the company’s successful transformation into a fintech.?
领英推荐
?? From the beginning, the company focused on providing simple, affordable financial services to small businesses, which helped it to stand out in a crowded market.?
?? Square's ability to develop its own software and hardware solutions allowed it to differentiate itself from competitors and offer a more comprehensive suite of services.?
?? Finally, the company's willingness to constantly innovate and expand its offerings helped it stay ahead of Fintech industry trends and capitalize on new opportunities.
Want more stories like this?
Subscribe to our page to keep up with Fintech!