Product to Watch: Square

Andrew ChaseBSAD 196 A: Product Management

Spring 2010

What is Square?

http://www.youtube.com/watch?v=

QSzsFAJAKHI

About

• startup company, Square Inc., is based out of San Francisco, and backed by venture capital firm Khosla Ventures and a group of angel investors

• idea for the product was born in February of 2009 when Jim McKelvey lost out on a sale of $2000 at his glass art business because he was unable to accept credit card payments

• focused on bringing “immediacy, transparency, and approachability to the world of payments”

https://squareup.com/about

https://squareup.com/about

https://squareup.com/about

https://squareup.com/about

Tangible Composition

40%

20%

40%

Tangible (Good)Intangible (Idea)Intangible (Service)

Total Product Concept

• Functional: allow individuals to accept mobile payments without the use of a traditional processing machine

• Aesthetic: sense of sight with its visually pleasing user interface, as well as touch with the tiny card reading gadget

• Customer Service: guaranteed for all issues relating to “any Square Account, payment, card processing, debiting or crediting”

• Psychological: ease user frustration with the process of accepting card payments because doing so is still difficult

Value

• three percent transaction fee on each swipe • eliminates the need for a merchant account• retailers can expect sales to rise five percent

soon after beginning to accept credit card payments

• the timesaving aspect of Square is huge • benefits received > costs, which equates to

significant value that can be passed on to the customer