Square, a mobile payments and point-of-sale (POS) provider, has been ramping up for a European launch after an earlier foray into the North American space this year. Square has taken concrete steps to facilitate a European expansion, culminating in the incorporation of a business known as Squareup Europe Ltd., which is based out of the UK.
A preliminary look into this strategy suggests that Square is looking to use the UK as a base for its European operations, which could not have come at a worse time for the group, given the recent fallout of the Brexit referendum. Like many other groups from every channel or industry, the UK has served as a ‘passport’ and bridge into the broader European Union (EU), a link that could soon be severed.
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
A Bridge too Far?
Should the UK ultimately continue on its path towards secession, which overwhelmingly it is expected to do in the near future, Square may need to rethink its European strategy given that the UK might prove to be outside the realm of the very continent it wishes to permeate.
The latest expansion ambitions follow after Jack Dorsey’s company expanded to Canada back in Q1 2016. Since being founded in the US back in 2009, the group has since extended its latitude to Canada, Japan, and Australia, having to date avoided Europe – its absence has been its competitors’ gains, with groups such as iZettle and SumUp making inroads.
As for its UK and broader European ambitions, Square has moved quickly to secure the requisite rights to provide payment services such as transactions in the country via Squareup Europe. The group began beta testing in June, but has also added former commercial secretary to the treasury Paul Deighton to its board of directors in a move to help solidify its direction.