Square exec: PayPal 'doesn't care about customers'
A Square executive said it is unlikely his company would consider working with archrival PayPal in any capacity, stating their respective cultures are "too different and fundamentally incompatible."
Steve DeWald, Square's head of strategic planning and analysis, made the comments in response to a query on question-and-answer website Quora asking "Has PayPal approached Square and discussed an acquisition yet?" DeWald's response: "Selling to PayPal would be like giving up, and we've only just gotten warmed up."
According to DeWald--who made it clear he is not a Square spokesperson but simply stating his opinions--Square retains the "mentality of a startup. Most of us genuinely believe that what we do matters. We have friends and family that are small and medium business owners, and we'd like to think that we're helping them compete in a marketplace that's increasingly hostile to them. PayPal is a part of the problem. They're just another card processor that doesn't care about their customers."
DeWald clarified the final comment by inserting a link to a 2011 Jezebel report on PayPal shutting down a user account dedicated to a holiday toy drive for needy children. PayPal later apologized and reinstated the account.
Square enables small businesses and other users to accept credit and debit purchases by swiping cards through its signature card reader, a small dongle that plugs into their smartphone's audio jack. Square charges a flat fee of 2.75 percent on all transactions and promises users no contracts, monthly fees or hidden costs. Last month, Square announced that more than 2 million businesses and individuals are using its platform, up from 1 million just six months earlier, adding that users are processing more than $6 billion in payments on an annualized basis.
eBay-owned PayPal introduced its own rival solution PayPal Here in March. The triangle-shaped dongle functions in the same manner as the Square unit but charges a flat rate of 2.7 percent per transaction. PayPal also is trialing mobile wallet services in nationwide retail chains including Home Depot, Abercrombie & Fitch and Jos. A Bank. Last week, PayPal said it expects to handle $10 billion in transacted mobile payment volume in 2012, an increase of 150 percent over a year ago.
- Read this Payments.com article
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