Why Square Wallet failed, and why Coin card is next…

Square’s recent troubles are not exactly a secret. The Wall Street Journal published a detailed analysis on April 21, detailing Square’s financial troubles and its rapidly shrinking cash position. Square took on a $100 million debt financing option earlier this year, but even with that option, WSJ and The Verge reported that the company only had about nine months of operating cash before it hit “predetermined ‘cushion’ of funds set aside as a last resort.” To add to its woes, Square was called out on removing Square Wallet from the iTunes and Google Play stores today. While Square Wallet is not Square’s core business (I would argue Square Register with its dongle still is), the app was intended to be the next big thing in payments. While Square is repositioning its platform around its “Square Order” app, it is clear that the wallet app didn’t take off.

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