Payments processor Square plans to introduce a redesigned iPad-based payment terminal, according to a Bloomberg report. Square is a unit of the Jack Dorsey-led Block (SQ); its other brands include Cash App and Tidal.
Square’s new iPad payment terminal will integrate tap-to-pay technology along with the physical credit-card reader in the device. The current generation of Square’s iPad terminals requires an external tap-to-pay reader.
Bringing the physical reader and the tap-to-pay reader together in the device is expected to make it easier for shoppers and merchants to complete a transaction. Square has not revealed when it will release the redesigned iPad payment stand or what it will cost. The iPad payment terminals on the market currently cost $169.
The product makes money for Square in a number of ways. In addition to the cost of acquiring the device, merchants pay a 2.6% commission and a $0.10 fee to Square for every transaction.
Wall Street’s Take
Consensus among analysts is a Strong Buy based on 30 Buys and four Holds. The average Block price forecast stands at $185.39 and implies upside potential of 50.5% to current levels. Shares have declined 25% year-to-date.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 81% Bullish on SQ, compared to a sector average of 69%.
Key Takeaway for Investors
If the redesigned iPad payment stands makes it easier to complete transactions quickly, then more merchants would want to use it. A broader adoption of the new device could increase the transaction commission and fee earnings opportunity for Square.
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