Apple put mobile wallet payment platforms like Google Wallet, Square and PayPal on notice this week with the reveal of Pay, but before Cupertino decided to launch its answer to the wallet, sources tell TechCrunch the company was eyeing an acquisition of Square.
Square’s simplistic payments platform seems like it would have been the perfect fit for Apple and would have added “Next Steve Jobs Nominee” Jack Dorsey to its loaded executive ranks, but after Apple executives failed to put enough cash on the table, Square walked away from negotiations.
“Apple wanted the company to come aboard, according to one source, but the discussed price was a sticking point: The tipster held that Apple wanted to buy Square for less than half of the $6 billion valuation it eventually would raise at (around $3 billion). Square, valued at the time at a firm 66 percent delta to that price point, declined to accept.”
After getting rejected, Apple went on to announce its competing mobile service, Apple Pay, that will allow iPhone 6 and Apple Watch users to pay for physical goods at retail locations with one simple tap. Instead of using Square to power the mobile payments, Apple has turned to Stripe as its partner for payments processing.
The report also notes that Apple showed Square a software register, booking services, and payment systems for iPhone, but Square’s people weren’t exactly thrilled about Apple’s enthusiasm to get into financial sector, as they felt the products would possibly outshine and out compete their own offerings.
Square recently raised a new $100 million of funding bring its valuation to $6 billion as the company is rumored to be heading for an IPO in the near future.
Update: The Loop has shot down this rumor with a patented “Nope.”
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
16 responses to “Square reportedly turned down $3 billion offer from Apple”
Too bad they rejected Apple’s offer but if they think they’re worth more then more power to them. I’d rather use Apple Pay than Square but I don’t know if they’re competing for the consumer market. I’m not too crazy about that Square Reader dongle.
too bad for them. eventually they will end up the loser as apple pay becomes the standard.
Thats not what happened to Dropbox, they survived the Apple offer and Steve’s offensive words:)
Dropbox had a broader range of targets and they readjusted. I don’t see the same for Square.
Square just make a very bad mistake, like the silicon valley tv show episode. But I dont care, its not square enix :)
According to Dalrymple, nope..
3B from Apple…now worth 6B. I dont see a mistake here dudes. Square can and will accept Apple Pay too……….. dont be morons.
If Apple doesn’t come up with the hardware. Imagine ipads with NFC ready to take apple pay without additional hardware.
If apple pay takes off the next logical step is making all iOS devices with NFC a terminal which they can do with software updates. There is a good reason apple wanted square, they want to cut the middle man as well.
Now they may well be screwed.
I can see Apple gearing up to sell hardware to vendors or even adding NFC a to iPads to make them a cashier straight out of the box. There is nothing stopping them from doing that and as you may have seen in many businesses, iPads are already working as terminals to accept payments.
With IBM and their marketing push, Apple may well be on its way to conquer the digital currency and once they do they will kill square, pay pal, amazon payments and all others like it.
Sounds like that one company that rejected Google’s offer, Groupon. Very stupid move on Square’s part.
Don’t try to use the Apple character on the Web unless you use a photo. At least I think that’s what you did that showed up on Zite as a Cmd clover symbol. That is a nonstandard character that will not show up for those browsing on non Apple devices such as Android.
I wonder if this is going to be a monopoly issue if no other credit card processor can process a NFC transaction from iPhone. Provided that Apple granted access to the chip, Square could just push out an update of their software. Two NFC enabled devices could complete the transaction. Charities and small business would benefit having an alternative to Apple Pay and its sky high fees.
With smart cards becoming a standard, I am sure Square is thinking about this. As a charity fundraiser, the ability to process mobile transactions with volunteers has been very beneficial.
Thats not what happened with Dropbox,they survived the Apple offer:)
See above.
The issue is not whether Square “survive(d)” but whether it will have access to the NFC chip. Sure, modify the dongle to accept smart cards provided that people continue to carry them. If people start paying everything with the phone and leave the physical cards at home, then this puts small business and charities at risk. If Apple is the sole credit card processor, you have a potential for anti-monopoly suit.
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