Square’s Quest for More Partners Looks to Add Merchant Appeal

Block Inc.’s Square point-of-sale operation has sought out new merchant deals for years, often through so-called partners, or companies that can offer complementary technology merchants are looking for. These partners can help close deals by bringing sophisticated systems to merchants that can hike sales and widen margins.

Now San Francisco-based Square, which works with nearly 1,000 such partners, says it is planning to add more this year.

How many more is unclear, but the tech add-ons such partner companies can bring to a deal for a merchant new to Square or for an existing seller is worth additional investment, Square says. “Square enables our … partners to innovate, scale, and reach millions of engaged businesses. By investing in both sides of this ecosystem, we’ve created a flywheel of shared success that strengthens our end-to-end network,” said Morgan Kuntze, global partnership lead at Block, in a statement.

But the bottom line for Square from an expansion of its partner universe, observers say, is still an expansion of the merchant base. “They want more merchants. It doesn’t scale to chase down one in a million [sellers],” says Cliff Gray, head of Gray Consulting, a Chicago-based consultancy. “And partners bring them merchants.”

The addition of partners can also appeal to merchants looking for new services, with discounts. As an example, a partner called Paperchase is offering  $250 off on bookkeeping, according to Square.

More partners, with specialties in a range of business operations, can also lead to more satisfied merchants. “The software tends to be specialized,” says Gray, “and the developer gets the benefit of being able to plug in and doesn’t have to worry about payments.”

Other partners cited by Square include LegalZoom, FoundersCard, and Sysco. The company says it also works with industry associations that serve merchants, including restaurant associations in California, Illinois, and the state of New York, to work with sellers on technology.

The aim, according to Kuntze, is to help merchants build business platforms that can scale “at every stage of growth.”