April 9, 2014
Square, the mobile payments company, could be looking for suitors, and it appears that Apple and Google are at the top of the list. The company, which got its start on the App Store, is also considering an IPO, according to Re/Code. According to the report, both Apple and Google have considered making acquisition offers for Square in the past year. In recent weeks, “acquisition rumors have run rampant for Square, including chatter among its competitors, with Google being named as the most likely acquirer.” Apparently this hasn’t sat well with Square CEO Jack Dorsey who would like a sale to Apple, believing that his company’s “design aesthetic and values” match more closely with the maker of the iPhone.
“Jack does not want to sell to Google,’" one source said flatly.Dorsey is the co-founder and co-creator of Twitter. He founded Square in 2009. Were Square not to sell, it could go down the IPO route. Unfortunately, “like many such startups, Square is still not yet profitable.” In January, Apple CEO Tim Cook hinted that his company was working on a mobile payment system that works with Touch ID. At the time, it was noted that PayPal, not Square, could become a partner in this endeavor. As a long-time Square user, I hope that Apple makes a play for the company and brings Dorsey along for the ride. As far as mobile payments go, I see no reason for Apple to reinvent the wheel. See also: Square Prompts Customers To Upgrade To Its New, Thinner Card Reader For Free, Loop’s New Fob Turns Any Regular Card Reader Into A Mobile Payment Terminal, and Apple Has 1.67 Billion Reasons To Introduce A Touch ID Mobile Payment System.