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Square doesn't have a network effect, it doesn't really matter if one store uses square, and the neighboring store uses google wallet, dwolla, or something else
by pedalpete 14y ago
Square doesn't have a network effect, it doesn't really matter if one store uses square, and the neighboring store uses google wallet, dwolla, or something else.
- natrius 14y agoSquare and payment systems in general most certainly do have network effects. For instance, I don't have a Discover card because it's not worth the hassle of checking whether each merchant accepts it. Network effects are the lion's share of the justification behind Square's Starbucks deal.
- tnorthcutt 14y agoYes it does. If their mobile payment app becomes the de facto standard, not accepting payment from that app could become as bad as not accepting credit cards.