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Old Apr 9, 2014, 09:08 AM   #1
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Apple Mulled Acquisition Offer for Square, but Deal Looks Unlikely for Now




With a goal to overhaul the online payments industry and a new revolving credit facility worth $200 million, analysts and technology pundits are wondering where Square is headed next. At least one theory proposed by Re/code explores the possibility of an Apple acquisition.

Both Apple and Google have been rumored to be in talks with Square in the past year about a possible acquisition, but no firm offers have been made. Square is not actively trying to sell the company, but insider sources claims it would entertain a premium offer, unless it was from Google.
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Either way, a sale to Google would disappoint [founder and CEO Jack] Dorsey, according to multiple people familiar with his thinking. For one, he was reportedly put off by Google after being involved in acquisition talks between his former company, Twitter, and the search giant. He also believes, sources said, that his company's design aesthetic and values match up much more closely with Apple than Google.
Square has close ties to Apple, with its hardware chief Jesse Dorogusker leaving his position as director of engineering for iPod, iPhone and iPad accessories at Apple to join the mobile payments startup.

A Square acquisition would be beneficial for both Apple and Square, claims Re/code. Square's future would be secured by Apple's cash reserves and its favorable position in retail, while Apple would be able to use Square's payment expertise to jumpstart any plans it has for a mobile payment system. Apple, though, may be ready to enable online purchases via an iPhone, but it likely is not ready for the robust offline system offered by Square.
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But Apple's entrance into mobile payments is much more likely to start with services that use its iPhones to help make online purchases easier to consummate rather than moving into offline payments, industry sources say. Square wouldn't be of much help in that regard. As such, Apple has soured on the idea of making an acquisition offer to Square for now, according to sources familiar with the company's thinking.
Apple may be developing a mobile payment service that would allow consumers to pay for physical goods using information stored in their iTunes accounts. The company is thought to have moved Jennifer Bailey from her position in Apple's online stores to a new role that places her in charge of building a payment service for the company.

Apple already has the underpinnings of such a payment system with the millions of credit cards stored in customers' iTunes accounts and its Passbook digital wallet app. CEO Tim Cook hinted at the possibility of mobile payments during a recent earning conference call, saying there is "a big opportunity on the platform."

Article Link: Apple Mulled Acquisition Offer for Square, but Deal Looks Unlikely for Now
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Old Apr 9, 2014, 09:10 AM   #2
Kendo
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Got all excited when I thought they meant Square Enix.
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Old Apr 9, 2014, 09:12 AM   #3
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They should buy my doughnut company.
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Old Apr 9, 2014, 09:13 AM   #4
Four oF NINE
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How would this product integrate with the existing Apple offerings? It seems a bit niche to me.
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Old Apr 9, 2014, 09:14 AM   #5
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…..but it would entertain a premium offer insider sources claim, unless it was from Google…..

Article Link: Apple Mulled Acquisition Offer for Square, but Deal Looks Unlikely for Now
Not from Google? Interesting. If Apple goes ahead, maybe in iOS9?
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Old Apr 9, 2014, 09:20 AM   #6
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Originally Posted by Four oF NINE View Post
How would this product integrate with the existing Apple offerings? It seems a bit niche to me.
Yeah, right now. But wait for a few years, where your phone can also be your credit card (or any card maybe ID also?). Swipe it, add info with the respective encription. And there you go. Just leave from your house with a phone.

please dont bla bla with "that is so insecure ****" since I keep all my things in my wallet. and is less safer for me if I lose my wallet than my phone. since you can acess to the info easier from a wallet which has everything on hand, than from an encripted phone.
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Old Apr 9, 2014, 09:21 AM   #7
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I think this acquisition makes a lot of sense. Apple will be entering the mobile payment market very soon and square has a lot experience in this space. Also Dorsey with Apple makes sense.


I think both the iWatch and Touch ID could be used to purchase items in the future.
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Old Apr 9, 2014, 09:23 AM   #8
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Plastic cards with magnetic strip is a product nearing the end of its life cycle, so why would Apple want to invest in that? There are a lot more interesting options for payment than Square.
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Old Apr 9, 2014, 09:23 AM   #9
mattopotamus
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I love square. I use the square cash app at least once a week
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Old Apr 9, 2014, 09:30 AM   #10
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Originally Posted by Jeaz View Post
Plastic cards with magnetic strip is a product nearing the end of its life cycle, so why would Apple want to invest in that? There are a lot more interesting options for payment than Square.
I think to some degree that could be Apple's thinking. They have never been big on needing a dongle etc to do things. That should be an add on to something you can do without the extra bit. So they will more likely want to do mobile payments with just the mobile as their native form. Unless Square has some patent that Apple wants, they aren't likely to make an offer unless the company starts to fail. Then they might just for old time sake (if they can get it for a song)
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Old Apr 9, 2014, 09:35 AM   #11
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Apple would be crazy not to do this. Because someone else will. I'm hoping they resist Google's deep pockets.

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Quote:
Originally Posted by Jeaz View Post
Plastic cards with magnetic strip is a product nearing the end of its life cycle, so why would Apple want to invest in that? There are a lot more interesting options for payment than Square.
Whose to say the future of Square has to be plastic cards? If anything Apple would be buying the customer base and maps/POI data. Unless Apple thinks they already have these customers?
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Old Apr 9, 2014, 09:38 AM   #12
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Originally Posted by Jeaz View Post
Plastic cards with magnetic strip is a product nearing the end of its life cycle, so why would Apple want to invest in that? There are a lot more interesting options for payment than Square.
Not sure how relevant the picture is to the product/service but yeah, my thought exactly.

Here in the UK (and AFAIK most of Europe) the mag stripe is already well-and-truly legacy: virtually everything has used chip-and-pin for years, while contactless is gradually appearing.

Heck, its about time the whole 1960s-era credit card concept was nailed up in a box and buried.

Maybe replaced with a system where, I dunno, you *don't* have to hand over the full account code to make a purchase, and the security *doesn't* rely on nobody seeing the reverse of the card (yes sir, we can reserve your room if you send us a scan of both sides of your card or, if you object, there are some nice comfy park benches nearby).

Maybe a system where the credentials I send you for a £500 purchase are generated per-transaction and can only be used once, to claim a maximum of £550?

Perhaps Apple should buy a bank and set up some payment systems that just work.
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Old Apr 9, 2014, 09:46 AM   #13
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Apple needs a retail POS system, an offsite payment system (Square), a virtual payment system (Paypal, Bitcoin methods), as a total solution with its revolutionary fingerprint verification system as well as the coming wave of updates to allow for chip based cards to replace 60's tech magnetic strips.

If they don't get it do they want me to run the division?

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Old Apr 9, 2014, 09:47 AM   #14
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Steal My Phone

750 million iTunes customers one checkbox away from being Square users?

Yes I use Square. I walk to the "register" and my face is already on their iPad screen.
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Old Apr 9, 2014, 09:48 AM   #15
Nikiaf
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How useful is this technology if the United States is pretty much the only country left that hasn't started using chip and PIN technology for cards? This seems like a pointless acquisition for Apple; since this is likely to be obsolete 3 years from now.
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Old Apr 9, 2014, 09:55 AM   #16
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Originally Posted by mattopotamus View Post
I love square. I use the square cash app at least once a week
Back in the day the definition of square was uncool. But I have to agree. Square is cool and I like it very much. More and more of the smaller vendors i work with are using square. Cabs are using square. There is huge opportunities for this company and technology. I wish them well.

Having said that, I would love to see apple acquire this company and integrate it into their ecosystem, but I am not sure if it would fit. At a minimum apple would have to completely rethink their wallet - and that may not be a bad thing.
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Old Apr 9, 2014, 10:04 AM   #17
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Originally Posted by Jeaz View Post
Plastic cards with magnetic strip is a product nearing the end of its life cycle, so why would Apple want to invest in that? There are a lot more interesting options for payment than Square.
Because as far as I know, the US are still a long long long long way away from the switch to modern payment methods (the US being quite literally the only country still using a 30 year old technology, or not currently transitioning).

But Apple would know that: it will take time, and until then, good old mag stripes will still work.
You have to realise how little the incentives are for the US to transition:
1) It would cost a fortune (that's the obvious reason)
2) Fraud is not so much a problem in the US, because the credit rating system is nearly full-proof.

Reason 2) is often forgotten! Many countries do NOT have a centralized system where every citizen's credit activity is archived. Such system wouldn't be possible (privacy laws), and also wouldn't be always useful (what in Europe with a new country every 200 miles...). In the US, as long as you can track, sue and pursue frauders, there is little incentive to switch to a more secure system.

We'll see...
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Old Apr 9, 2014, 10:06 AM   #18
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Quote:
Originally Posted by Jeaz View Post
Plastic cards with magnetic strip is a product nearing the end of its life cycle, so why would Apple want to invest in that? There are a lot more interesting options for payment than Square.
I was thinking the same thing, but then it's not just the square reader. I am sure they are interested in the Square marketplace app, it's easy enough to make a new reader that reads the future credit cards.
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Old Apr 9, 2014, 10:08 AM   #19
hagar
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Square only works with the magnetic strip? Apple, stay away

In Europe, we have long switched to chip + pin for debit and credit cards. Much safer.
One day, the US will follow.
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Old Apr 9, 2014, 10:10 AM   #20
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Square only works with the magnetic strip? Apple, stay away
Yeah I am sure Apple has no interest in their software, I am sure it's that little card reader that at least 3 other companies make besides square.


* Intuit GoPayment

* PayAnywhere

* Square Card Reader

* VeriFone SAIL
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Old Apr 9, 2014, 10:11 AM   #21
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Originally Posted by Four oF NINE View Post
How would this product integrate with the existing Apple offerings? It seems a bit niche to me.
Hey man, remember that $5 I owe you? here, just swipe my credit card across your screen.
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Old Apr 9, 2014, 10:11 AM   #22
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Originally Posted by peterbaby View Post
Because as far as I know, the US are still a long long long long way away from the switch to modern payment methods (the US being quite literally the only country still using a 30 year old technology, or not currently transitioning).
If retailers don't switch over to chip and pin by the end of the year, they become liable for any fraud activity. EMV is coming to the US quickly.
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Old Apr 9, 2014, 10:13 AM   #23
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Like DropBox - I hope that Square stays OEM neutral.
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Old Apr 9, 2014, 10:17 AM   #24
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They should buy my doughnut company.
It's a half-baked idea, as your business plan is full of holes, and you are asking too much dough. My eyes glaze over when I read comments like that.
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Old Apr 9, 2014, 10:29 AM   #25
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They should buy my doughnut company.
The thinnest doughnut. Made of organic whole wheat, gluten-free, no sugary coating and baked instead of fried as we know what is good for you.

So much better than those big fried, sugary, crispy doughnuts from Korean copycats that cost 99c and have a hole in them.

Only $4.99. Password and user name required. The hole is an in-app purchase.

Recipe from California, baked in China.
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