Square, which processed about USD 30 billion in payments from its merchant customers in 2014, has been expanding into other areas such as business lending and payroll processing. Square has been working with Goldman Sachs Group, Morgan Stanley and JPMorgan Chase & Co. on the IPO.
Under the US Jumpstart Our Business Startups Act, companies with less than USD 1 billion in revenue can file confidentially for an IPO with the Securities and Exchange Commission and test investor appetite while keeping financial and operating details outside the public eye. A confidential filing does not necessarily lead to an IPO, Reuters reports.
Square raised USD 25 million in funding from Victory Park Capital in May 2015, taking the total the company has raised to more than USD 590 million. Its private-market valuation, according to The Wall Street Journal, is USD 6 billion.
In June 2015, Apple unveiled a partnership for Apple Pay with Square for the launch of a new card reader designed to allow small businesses to take Apple Pay payments as well as credit card chip payments, but not card swipes.
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