Comment by paxys
18 hours ago
Exactly. Square was the first great checkout system, but now a decade and a half later every other system is good enough that retailers aren't going to pay extra for a flashier app.
18 hours ago
Exactly. Square was the first great checkout system, but now a decade and a half later every other system is good enough that retailers aren't going to pay extra for a flashier app.
Over the last 10 years or so in SF and LA, I’ve seen so many countless POS systems at restaurants and small businesses that it’s difficult to believe that Square is anything more than 1 player in an enormous field.
And businesses I frequent over many years seem to change their POS systems often. I’ve always assumed that every year there are a bunch of new startups using their VC funds to give away free iPad minis. When the cheap hardware breaks or the software company goes under, there’s always a new one to take its place.
What's wrong with being 1 player in enormous field? Does everything need to be a monopoly in US nowadays?
Square is a great option for selling crafts at a market once a month. I tried to use it for a proper multi-channel retail store and it immediately fell apart:
- the e-commerce integration (Weebly?) is very limited and the resulting sites are dog slow
- the POS itself and the backend don't work when you have hundreds of SKUs and many variants
- there's very little customization or support
My business wasn't huge but we were doing ~300k revenue annually online and in-store. We started on Square, tried Lightspeed (also garbage) and finally ended up on Shopify (best of a bad lot).
Despite making noise about "supporting small business" Shopify makes most of their money from e-commerce for giant brands. They've tried to juice returns from small customers with merchant cash advances but my sense is they make more doing professional services for big e-commerce brands
And before people like my barber would have had a square reader. With NFC in modern phones, they just use that
It’s not extra and their hardware is still far better than the competition. Square is still awesome in the small business PoS space. Their lead has not shrunk.
Toast has already caught up in market share, and dominates the restaurant industry. Square's numbers have been stagnant for many years.
And more importantly, the entire premise when Square launched was that app-based "cloud" PoS systems would replace all traditional cash registers. Except now 15 years later that simply hasn't happened. Existing players in the space all caught up and shipped chip and NFC readers to their retailers, and that's all that was needed.
The ubiquity of NFC has made specialized hardware irrelevant for entire industries. It's set dressing for small businesses. The ruggedized enclosures and swiveling touchscreens are cute, but that's not a moat.
Their lead absolutely has shrunk. In the mid-late 2010s it was either Square, or a bevy of shovelware Windows POS systems loosely stitched together with a tablet for rewards and maybe grubhub. Clover and Toast are both regular sights in that space now.
> Their lead has not shrunk
It has though, by a lot. Toast in particular has eaten Square's lunch in the restaurant industry and now they're expanding to retail. Even NCR has caught up, along with a long tail of newer competitors eating away at market share.
There was a window of time where Square was the default choice for small biz POS and that is most definitely not the case anymore.
You might think Square has better hardware/software, but they absolutely are extra cost-wise for small businesses if you compare them to e.g. Helcim.