Looks like things aren't just credit card swipes and sunshine for the mobile payment system Square. The New York Times speculates that the company may be facing some financial hardships. As Bloomberg sources reported earlier this week, Square is "is in talks to raise financing at a $6 billion valuation" and is looking to raise some $200 million in new funding. The Times calls the $6 billion "a deflated figure" that suggests the company isn't as profitable as expected.
The Times points out that Square's is a "difficult business to make a buck in," especially with competitors like PayPal and Amazon.com ensuring that increased volume is difficult to attain. International Business Times reports today that the iPhone 6 will likely be NFC-enabled, making Apple a potential new competitor for Square in the mobile payment arena.
News of Square's efforts to raise $200 million follows close on the heels of the company's purchase of the delivery service Caviar, a deal that was rumored to be worth $100 million. As the Times notes, this diversification attempt may well be a strategy to allow Square the chance to beat the competition and earn a higher valuation.
· Square Feeling Squeezed From All Sides [NYT]
· Square Said in Talks for Funding at $6 Billion Valuation [Bloomberg]
· How an NFC-Enabled iPhone 6 Could Revolutionise Mobile Payments [IBT]
· All Square Coverage on Eater [-E-]