Square Is On Track To Process $15 Billion In Payments This Year

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Wednesday, May 22, 2013 Square Is On Track To Process $15 Billion In Payments This Year This chart comes from Business Insider Intelligence, a research and and analysis service focused on the mobile and Internet industries. Sign up for a free trial here. Square's payment volume is growing exponentially. As it launched the new Square Stand register last week, the mobile payments company announced that it is now processing $15 billion in transactions on an annualized basis, or $41 million in payment volume per day. These figures do not include Square's partnership with Starbucks.  (The annual run rate is up from $10 billion in November.) Assuming a 2.75% processing fee going to Square, that works out to an annual revenue run rate of $413 million, although Square pays out a hefty portion of those fees to Visa, MasterCard, and others.  Back in August, we took a stab at quantifying what the Square-Starbucks partnership might look like. Looking at the latest analyst estimates, we think Starbucks is projected to do $3.7 billion in sales this quarter. If 75% of sales are historically in the U.S. and about half of those come through credit cards, that works out to approximately $5 billion in payments that Square will handle at Starbucks this year. Again, that Starbucks-linked transaction volume is not included in the $15 billion number cited earlier, or in the chart below.    With Stand, Square hopes to further cement its place in retail while simultaneously warding off threats from competing solutions like Near-Field Communications (NFC), a technology that allows phones to communicate wirelessly with NFC-compatible payment terminals. As we discussed in our recent report on mobile payments, we believe that software-based solutions like Square are better-positioned to win the mobile payments race because they integrate seamlessly with current consumer behavior.  Read » Also On SAI Today: Twitter Just Added An Extra Layer Of Security To Prevent Your Account From Being Hacked Sergey Brin's Complete Vision For How Self-Driving Cars Could Make Everything So Much Better Advertisement CHART OF THE DAY: Twitter Is Getting More Popular With Teens Who Want To Escape Their Parents On Facebook CHART OF THE DAY: The Reason Yahoo Bought Tumblr (And The Reason To Be Skeptical) CHART OF THE DAY: The Facebook IPO, One Year Later Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the SAI RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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