Framed Data, a predictive analytics service, is a perfect fit for Square as the company tracks merchants’ transaction history through its services in order to better determine their eligibility for loans through Square Capital. Basically, Square has to do a detailed risk analysis for each customer and determine at what rate they are going to be paying back their loans. So it makes sense that the team would naturally be attractive to Square for its Square Capital product.
Square is not acquiring Framed Data’s technology as part of the arrangement. The Framed Data product will be shut down at the end of the month.
Prior to being acquired, Framed Data served as an analytics engine that helped its customers understand user behavior. It would basically look at what users are doing and then make predictions — such as how many interactions are required in an app before a user makes their first in-app purchase. Framed Data previously raised USD 2 million in seed financing.
Square has built momentum and shows early signs of success in expanding its business beyond only selling mobile credit-card readers to small business owners.
Square shifted its focus in the last couple of years to get small businesses (but also bigger merchants) to use the company’s add-on services for managing inventory, securing cash advances and analyzing sales data. For instance, in its first earnings report as a public company, the company said that the shares climbed after fourth-quarter sales rose 49 % to USD 374 million.
Earlier this month, Square launched in Australia, its first country expansion in three years.
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