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This is pretty ridiculous given that Square's market is a tiny fraction of retail, its distribution model is expensive, and it doesn't solve any of the problems
by thinkcomp 15y ago
This is pretty ridiculous given that Square's market is a tiny fraction of retail, its distribution model is expensive, and it doesn't solve any of the problems with the payment industry. Granted, I'm a competitor, but $2 billion? Even $1 billion is absurd.
Sigh.
- erikpukinskis 15y agoYou do realize "retail" is a multi-trillion dollar segment, right?
- thinkcomp 15y agoYes. That's why I'm in it covering the 99.99% of cases that Square's 0.01% solution misses.
- ryannielsen 15y agoInvestors aren't looking at what Square's offering now; they're looking at what Square can reasonably offer in the future, soon enough that their investment is "worth it". Square may only address 0.01% of the market now, but they might have a realistic plan for addressing 0.1% or 1% or 10% of the market, making them a billion to multi-billion dollar company. If Square is able to convince investors that they've got mass market appeal then they can justify a multi-billion dollar valuation. Considering Visa invested an undisclosed amount in Square, they may actually have reason to command such a large valuation.