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Home / Technology / Square acquires Weebly – here's why it's a big deal – The Motley Fool

Square acquires Weebly – here's why it's a big deal – The Motley Fool



The Payment Processing and Financial Technology Company Square (NYSE: SQ) announced that it is Weebly, a site-building service, for $ 365 million under a bar and a floor Bought deals. This could help Square accelerate its growth in two key ways: e-commerce sales volume and international expansion.

Rewarding the square-growing ecosystem with a website-building platform could pay off tremendously for the company looks like a bargain.

  Square Payment Terminal

Square has evolved into more than just payment hardware. Image source: Platz.

Weebly Helps Solve One of Square's Biggest Problems

If you're unfamiliar with Weebly, it's a website creation platform that enables your customers to easily create professional-looking websites and online stores. It's easy to see where this could fit in Square's ecosystem ̵

1; now, a small company could use Weebly to set up its business, Square's payment processing solutions to collect its revenue, and Square Capital for its ongoing financing needs, just to name a few to name the possibilities. As Square CEO Jack Dorsey said in the press release, the acquisition announced, "Square and Weebly share a passion for empowering and celebrating entrepreneurs."

"Omnichannel Commerce is our most important focus area in 2018," said Alyssa Henry, Square's saleswoman. "Whether you're an artist, a winemaker or a hairdresser, with the sellers at Square and Weebly they have a coherent solution to build their business."

With 625,000 paying subscribers and little overlap with Square's current merchant base, this creates tremendous opportunity to cross Square's other services.

A frequent criticism of Square's business model is that it relies heavily on brick-and-mortar retail or retail card presentation. Given the gradual but definitive shift to e-commerce, this is certainly a legitimate concern. The acquisition of Weebly gives Square a big boost in the retail e-commerce side and the potential to dramatically increase its online sales volume in the coming years.

Said Dorsey, "Square began its journey with personal solutions while Weebly began. Since then, we have both built services to bridge these channels, and we can go even further and faster together."

Help with international expansion

In addition to developing omnichannel solutions, one of Square's top priorities is expanding its international presence. Square is currently active in just four markets apart from the US – Japan, Canada, Australia and the UK

With nearly 40% of Weebly's paying subscribers (approximately 250,000) outside the US, this acquisition could certainly help speed things up Square & # 39 ; s expansion into other high-potential markets.

Global credit card transaction volume is expected to grow 54% by 2020, and by 2025, global card payments are projected to reach $ 55 trillion per year by the year 2025, according to the Nilson Report. And one can assume that the international markets will be a major driver of this growth. If Square could only take a 2% share of this amount, that would account for more than 15 times of its current annualized payment volume.

In short, the international expansion is a huge ]

Square is serious about building a global small-business ecosystem

In summary, the acquisition of Weebly has the double advantage of Square & # 39; s e-commerce to boost presence and speed up its international expansion efforts.

In recent years, Square has quickly become much more than just credit card hardware for small businesses. In addition to its core payment processing business, Square has a thriving lending business, a peer-to-peer payment application, a food delivery platform and more.

With this latest acquisition, Square has come one step closer to the one-stop solution I would not be surprised if Weebly generated far more value for the company than its $ 365 million price.


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