[isaacdstern]

Square lost over $100MM in 2013...you need to do a ton of MCA's to make that loss up!!

[Sean Cash]

Square lost over $100MM in 2013...you need to do a ton of MCA's to make that loss up!!

they're targeting the highest risk segment. micro-merchants with mobile payment processing. Makes splitting pretty easy. Unplug one phone swiper and plug in another processor's swiper.

[mfs01]

they're targeting the highest risk segment. micro-merchants with mobile payment processing. Makes splitting pretty easy. Unplug one phone swiper and plug in another processor's swiper.

This also makes defaulting pretty easy...

[JayBallentine]

This also makes defaulting pretty easy...

I would bet pretty strongly that this has been the subject of numerous meetings, fights, etc. amongst Jack and his team. They're not out to eat guys' lunch while leaving their asses bare.

[JayBallentine]

Square lost over $100MM in 2013...you need to do a ton of MCA's to make that loss up!!

They likely intentionally operated at a net loss to acquire customers. Kinda like when brokers take $0 commission on initial deals so they can make money on the renewal.

Surely they have quantified the value of each "Square for Business" customer relative to how much they can make off them from MCA. For example; "We have 100 Square for business customers and we know that 5 will turn into deals, therefore we will break even at X point and be profitable at Y point.

Guys in this space are "cash right now guys" - guys on the tech side attitudes are "screw profits (for now) - get market share and monetize (e.g. get to a liquidity event) later."