Square is now processing $4 million in mobile payments per day and expects to process $8 million per day by October, TechCrunch writes.Given that they passed the $3 million mark at the end of May, that’s an astounding growth rate–30% in two months.
And it certainly makes Square’s billion dollar valuation look sensible. Back of the envelope maths time! Let’s say they double that processing again next year (a low bar). Square takes around 3% of every transaction. That would mean around $150 million in revenue, just a few years after starting up.
Most of that goes out the door to credit cards companies, but that’s something all payments providers have to deal with. And Square will bypass the credit card soon enough.
The point is that Square has a real business model and amazing growth in a market where the sky seems to be the limit.