Square and Digitized Payment Services

Square (SQ) is commonly found all around small businesses, although it charges a 2.75% fee per transaction, compared to the lower transaction rates of about 1.5% for Visa (V) and MasterCard (MA). With AMZN trying to get into the market, Square faces competition to lower its charge rates.

Their business model is simple: they provide an "iPad" system for $10 to businesses wishing to use their service and charge them a small fee per transaction. As more and more payments are being digitized, the market is growing rapidly, and even more-so abroad with nearly all of Europe untapped.

Do you think Square can stay competitive and start posting positive margins? Do they face too much competition with some major players in the market? Already having spread their brand and services wide throughout the market, do they have a strong acquisition value?

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