Square, a mobile payments and point-of-sale (POS) provider, has been steadily upping its market penetration over the past year, focusing on Europe over a heavily competitive US market.
Square has expanded to Canada as well as strengthening its presence in the US. However, the group’s CEO Jack Dorsey has long since seen Europe as a more viable target for expansion. The group first unveiled plans for a move into Europe back in June, though it has now taken more concrete steps to facilitate a European move.
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Last year, Square took steps to launch its Europe Ltd. subsidiary based out of the UK. For Square, the UK represents a critical locale and opportunity, given lingering concerns facing the company in terms of profits and long-term growth prospects.
However, the group has faced a litany of regulatory hurdles, which have collectively been an issue for all payments processors. In the UK, Square will compete with other rivals such as Ingenico Group SA and iZettle, according to a Bloomberg report. Despite the upcoming specter of Brexit, the UK still boasts an attractive base of clients, constituting a top-five economy and a far less saturated market than the United States.
An official launch in the UK could help allay any shareholder concerns and also help grow the company, giving it some needed momentum in H2 2017. Square to date has focused mainly on payments processing, though it has expanded into other sectors such as loans and software services.