HOW SQUARE IS
DISRUPTING BANKS	
  
JACK
DORSEY
CEO SQUARE 	
  
UNDERSTANDING
THE BUSINESS
MODEL OF SQUARE
Business Model Case Study
May, 2014
INTRODUCTION
INTRODUCTION
WELCOME TO
THIS
BUSINESS
MODEL
CASE STUDY
WHAT ABOUT
THE BANKING
INDUSTRY?
Bill Gates
BANKING IS
NECESSARY.
BANKS ARE
NOT.
Quote:
“The biggest risk to the finance sector today is
not from other banks , nor related to the inability
to apply Basel...
LET’S LOOK AT
A DISRUPTIVE
BUSINESS
MODEL
Business Model Case Study:
SQUARE
BUSINESSMODELCASESTUDY
BUSINESSMODELCASESTUDY
“I WANT TO
SEE THE
BASIC ISSUES
AND
ANNOYANCES
THAT PEOPLE
DEAL WITH IN
THEIR LIVES.”
Jack Dorsey T...
WHAT
IS THEIR
VISION?
BUSINESSMODELCASESTUDY
BUSINESSMODELCASESTUDY
Jack Dorsey
Founder and CEO of Square
Co-creator and co-founder of Twitter
“Square is rethinking pa...
WHAT IS
THE MOST
IMPORTANT
TREND THEY
CONNECT TO?
BUSINESSMODELCASESTUDY
BUSINESSMODELCASESTUDY
WHAT IS
THE PROMISE
TO THEIR
CUSTOMERS?
BUSINESSMODELCASESTUDY
For sellers:
SELLING MADE SIMPLE.
AFFORDABLE TOOLS TO START,
RUN, AND GROW YOUR
BUSINESS.
For buyers:
A SIMPLE AND MAGICAL...
WHAT IS
THE JOB THEY
GET DONE
FOR THEIR
CUSTOMERS?
BUSINESSMODELCASESTUDY
CONNECT LOCAL
SELLERS WITH BUYERS
EVERYWHERE	
  
BUSINESSMODELCASESTUDY
HOW DO
THEY CONNECT
TO THEIR
CUSTOMERS?
BUSINESSMODELCASESTUDY
BUSINESSMODELCASESTUDY
SIGNUP
GET FREE READER
GROW	
  
BUSINESSMODELCASESTUDY
OR BUY THE $10
SQUA(RED) READER AND
FIGHT AIDS 	
  
HOW DO
THEY CAPTURE
VALUE?
BUSINESSMODELCASESTUDY
BUSINESSMODELCASESTUDY
WHAT
PRODUCTS AND
SERVICES
DO THEY
OFFER?
BUSINESSMODELCASESTUDY
BUSINESSMODELCASESTUDY
SQUARE REGISTER FOR
SELLING IN STORE
AND ON THE GO	
  
BUSINESSMODELCASESTUDY
SQUARE MARKET FOR
SELLING ONLINE	
  
BUSINESSMODELCASESTUDY
SQUARE WALLET FOR
CONSUMERS	
  
BUSINESSMODELCASESTUDY
SQUARE CASH FOR
CONSUMERS	
  
WHAT
IS THEIR
MINDSET?
BUSINESSMODELCASESTUDY
Quote:
“Business Model Innovation does not come from
creatives only. It comes from understanding other
business models and...
BUSINESSMODELCASESTUDY
“Everything we do
is about getting people to be
more open, more creative, more courageous.”
WHAT
ARE THEIR
SKILLS?
BUSINESSMODELCASESTUDY
BUSINESSMODELCASESTUDY
DESIGN
COLLABORATION	
  
OBSERVATION
WHAT
TOOLS
DO THEY
USE?
BUSINESSMODELCASESTUDY
REGULAR OFF-SITES
WEEKLY TOWN HALLS
BUSINESSMODELCASESTUDY
Visual by
Gregory Koberger
Startupnotes.org
BUSINESSMODELCASESTUDY
Key Partners Key Activities
Key Resources
Value Proposition
Channels
Relationships Customers
Revenu...
BUSINESSMODELCASESTUDY
WHAT WILL BE
JACK DORSEY’S
NEXT
STRATEGIC
CHOICE?
ASK YOURSELF
THESE
QUESTIONS!
BUSINESSMODELCASESTUDY
1. WHAT
DID YOU
LEARN?
BUSINESSMODELCASESTUDY
2. WHAT
QUESTIONS
DOES THIS
RAISE?
BUSINESSMODELCASESTUDY
3. WHAT IS
YOUR NEXT
STRATEGIC
CHOICE?
BUSINESSMODELCASESTUDY
4. HOW IS THAT
REFLECTED IN
YOUR
BUSINESS
MODEL?
CONTACTINFORMATION
Patrick van der Pijl
patrick@businessmodelsinc.com
@patrickpijl
Roland Wijnen
roland@businessmodelsinc....
COLOFON
Copyright © 2014 Business
Models Inc.
All rights reserved.
The information and
insights presented in this
business...
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How Square is Disrupting Banks

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Understand how Jack Dorsey - CEO Square - is changing business models in the banking industry. Will he disrupt the banks?

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How Square is Disrupting Banks

  1. 1. HOW SQUARE IS DISRUPTING BANKS   JACK DORSEY CEO SQUARE  
  2. 2. UNDERSTANDING THE BUSINESS MODEL OF SQUARE Business Model Case Study May, 2014
  3. 3. INTRODUCTION
  4. 4. INTRODUCTION WELCOME TO THIS BUSINESS MODEL CASE STUDY
  5. 5. WHAT ABOUT THE BANKING INDUSTRY?
  6. 6. Bill Gates BANKING IS NECESSARY. BANKS ARE NOT.
  7. 7. Quote: “The biggest risk to the finance sector today is not from other banks , nor related to the inability to apply Basel III risk controls or standards. The biggest risk to the finance sector today is the growing gap between the institution and the customer.” Brett King, author of Bank 2.0 and Bank 3.0
  8. 8. LET’S LOOK AT A DISRUPTIVE BUSINESS MODEL
  9. 9. Business Model Case Study: SQUARE
  10. 10. BUSINESSMODELCASESTUDY
  11. 11. BUSINESSMODELCASESTUDY “I WANT TO SEE THE BASIC ISSUES AND ANNOYANCES THAT PEOPLE DEAL WITH IN THEIR LIVES.” Jack Dorsey Tries To Break Out Of The Bubble By Riding The Bus “Every Single Day”, posted Sep 12, 2012 in TechCrunch.  
  12. 12. WHAT IS THEIR VISION? BUSINESSMODELCASESTUDY
  13. 13. BUSINESSMODELCASESTUDY Jack Dorsey Founder and CEO of Square Co-creator and co-founder of Twitter “Square is rethinking payments and money, which have been around for thousands of years. We want to take the mechanical burden out of the process.”
  14. 14. WHAT IS THE MOST IMPORTANT TREND THEY CONNECT TO? BUSINESSMODELCASESTUDY
  15. 15. BUSINESSMODELCASESTUDY
  16. 16. WHAT IS THE PROMISE TO THEIR CUSTOMERS? BUSINESSMODELCASESTUDY
  17. 17. For sellers: SELLING MADE SIMPLE. AFFORDABLE TOOLS TO START, RUN, AND GROW YOUR BUSINESS. For buyers: A SIMPLE AND MAGICAL WAY TO PAY. PAYMENT IS AUTOMATIC. BUSINESSMODELCASESTUDY
  18. 18. WHAT IS THE JOB THEY GET DONE FOR THEIR CUSTOMERS? BUSINESSMODELCASESTUDY
  19. 19. CONNECT LOCAL SELLERS WITH BUYERS EVERYWHERE   BUSINESSMODELCASESTUDY
  20. 20. HOW DO THEY CONNECT TO THEIR CUSTOMERS? BUSINESSMODELCASESTUDY
  21. 21. BUSINESSMODELCASESTUDY SIGNUP GET FREE READER GROW  
  22. 22. BUSINESSMODELCASESTUDY OR BUY THE $10 SQUA(RED) READER AND FIGHT AIDS  
  23. 23. HOW DO THEY CAPTURE VALUE? BUSINESSMODELCASESTUDY
  24. 24. BUSINESSMODELCASESTUDY
  25. 25. WHAT PRODUCTS AND SERVICES DO THEY OFFER? BUSINESSMODELCASESTUDY
  26. 26. BUSINESSMODELCASESTUDY SQUARE REGISTER FOR SELLING IN STORE AND ON THE GO  
  27. 27. BUSINESSMODELCASESTUDY SQUARE MARKET FOR SELLING ONLINE  
  28. 28. BUSINESSMODELCASESTUDY SQUARE WALLET FOR CONSUMERS  
  29. 29. BUSINESSMODELCASESTUDY SQUARE CASH FOR CONSUMERS  
  30. 30. WHAT IS THEIR MINDSET? BUSINESSMODELCASESTUDY
  31. 31. Quote: “Business Model Innovation does not come from creatives only. It comes from understanding other business models and learning from them.” Patrick van der Pijl, Producer Business Model Generation, CEO Business Models Inc.
  32. 32. BUSINESSMODELCASESTUDY “Everything we do is about getting people to be more open, more creative, more courageous.”
  33. 33. WHAT ARE THEIR SKILLS? BUSINESSMODELCASESTUDY
  34. 34. BUSINESSMODELCASESTUDY DESIGN COLLABORATION   OBSERVATION
  35. 35. WHAT TOOLS DO THEY USE? BUSINESSMODELCASESTUDY
  36. 36. REGULAR OFF-SITES WEEKLY TOWN HALLS BUSINESSMODELCASESTUDY Visual by Gregory Koberger Startupnotes.org
  37. 37. BUSINESSMODELCASESTUDY Key Partners Key Activities Key Resources Value Proposition Channels Relationships Customers Revenue StreamsCost Structure SQUARE BUSINESS MODEL   Square Wallet: Paying easy and automagically Businesses of all sizes (US, Canada, Japan) Get your money fast Simple pricing. Only pay when you sell No fees for presence in Square Market Free No restrictions on number of devices On the go: run your business on smart device In store: turn iPad into complete POS Online: free store in Square Market Square Market Word of Mouth Apple Store Best Buy Rethinking buying and selling Build software and hardware Creative and collaboratieve entrepreneurs Hardware and software RED for offering the SQUA(RED) reader to fight aids Jobvite for recruiting the best people Sumitomo Mitsui Card Corporation Off-sites ICT and hardware development and systems People Consumers Square Cash: Send and receive money
  38. 38. BUSINESSMODELCASESTUDY WHAT WILL BE JACK DORSEY’S NEXT STRATEGIC CHOICE?
  39. 39. ASK YOURSELF THESE QUESTIONS!
  40. 40. BUSINESSMODELCASESTUDY 1. WHAT DID YOU LEARN?
  41. 41. BUSINESSMODELCASESTUDY 2. WHAT QUESTIONS DOES THIS RAISE?
  42. 42. BUSINESSMODELCASESTUDY 3. WHAT IS YOUR NEXT STRATEGIC CHOICE?
  43. 43. BUSINESSMODELCASESTUDY 4. HOW IS THAT REFLECTED IN YOUR BUSINESS MODEL?
  44. 44. CONTACTINFORMATION Patrick van der Pijl patrick@businessmodelsinc.com @patrickpijl Roland Wijnen roland@businessmodelsinc.com @rolandwijnen Contact us for business model case studies customized to your strategic issues
  45. 45. COLOFON Copyright © 2014 Business Models Inc. All rights reserved. The information and insights presented in this business model case study are based on public sources and our experience in over 250 business model innovation projects. This business model case study reflects our current perspective on the Square model. The purpose is to inspire thinking about value creation and new business models. It is not meant to describe an absolute truth. Copyright of photographs and written material lies with the respective authors. Thank  you  for   watching!  

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