That's not their problem. There was some scrutiny of their business model around their recent IPO postponement & acquisition rumors. Here's a citation:
But Square's business yields razor-thin profit margins, if any... About four-fifths of that money is spent on fees to payment networks... other financial intermediaries and fraud costs...
Square's gross margin, the portion of revenue remaining after paying processors and covering other costs like fraud, fell to 21% in 2013, from 27% in 2012, according to a copy of Square's results viewed by The Wall Street Journal.
Square has been adding services that could eventually be more profitable than its main payments business.
But in recent weeks, people close to Square have indicated to Wall Street executives that a 2014 offering is unlikely because the company has run into problems with its "revenue run rate," a key projection of future performance. It has been reported that Square is unprofitable, but that 2013 revenues exceeded $100 million.
But Square's business yields razor-thin profit margins, if any... About four-fifths of that money is spent on fees to payment networks... other financial intermediaries and fraud costs...
Square's gross margin, the portion of revenue remaining after paying processors and covering other costs like fraud, fell to 21% in 2013, from 27% in 2012, according to a copy of Square's results viewed by The Wall Street Journal.
Square has been adding services that could eventually be more profitable than its main payments business.
http://online.wsj.com/news/articles/SB1000142405270230382560...
But in recent weeks, people close to Square have indicated to Wall Street executives that a 2014 offering is unlikely because the company has run into problems with its "revenue run rate," a key projection of future performance. It has been reported that Square is unprofitable, but that 2013 revenues exceeded $100 million.
http://www.foxbusiness.com/markets/2014/02/28/square-ipo-pos...