How does Square make money?

Square makes money via subscriptions, transaction fees, and service fees. Here is a closer look at the ways Square makes money:

• Subscriptions

  Square generates revenue from subscriptions users buy to their different platforms, these include Square Capital, Cash App, and Instant Transfers.

• Transaction fees

  Square charges users transaction fees for their different managed payment solutions. This normally consists of a percentage of the figure contained within the user's transaction.

• Service fees

  Square also generates profits from service fees it charges users that take advantage of services on any of the company's platforms, these include Square Capital, Cash App, and Instant Transfers.

• Third-party hardware sales

  Lastly, the company also makes money from third-party hardware sales. This includes Square hardware products like Square Stand, Square Register, Square Terminal, chip readers, and contactless payment processes. Many businesses purchase these products to streamline their checking out and payment processes.