Google M&A team, after acquiring Nest, is now getting ready to lay its hands on San Francisco based mobile payments company Square. A recent tweet by Vijay Shekhar Sharma, founder one97 and PayTM revealed this.
Right now Google M&A team is either in negotiation or preparing their counter offer for Square.
— Vijay Shekhar (@vijayshekhar) January 14, 2014
Founded in 2009, by Twitter Inc. chairman, Jack Dorsey and Jim McKelvey, Square is currently being valued at USD 5 Bn, with a hike of over 53% from USD 3.25 Bn in 2012. Recently, the company has also made a tender offer to sell 1 million shares at $135.28 each in a private deal.
The recent hike in valuation is said to be due to the increased workforce and an investment of USD 25 Bn from Starbucks Corp., in 2012. Starbucks currently use Square’s services in 7000 of its stores.
Square is currently providing two products: Square Register and Square Wallet. Square Register allows individuals and merchants in the United States, Canada, and Japan to accept debit and credit cards on their iOS or Android smartphone or tablet computer.
Square Wallet, on the other hand, allows customers to set up a tab and pay for their order simply with their name (or a barcode) using a stored credit, debit, or gift card.
Square currently competes with brands like eBay’s Paypal and Google Inc. to get a threshold in the increasingly crowded payments industry. Also, Square recently completed its fourth acquisition with Evenly, a Bill splitting app.
Considering the amount of talent Square has and the potential it could add to the Google’s payment services, the deal would completely make sense for the company. However, looking at the growth pattern, and also the speculations of Square to go for an IPO in the coming year, it would be worth watching if this deal really could happen.