According to a report from Bloomberg, Square Inc., the mobile-payment company filed confidentially for an initial public offering. The company was founded and is currently led by Twitter Inc.'s (TWTR- Analyst Report) interim Chief Executive Officer Jack Dorsey.
The move comes as PayPal, one of Square's primary rivals, is performing very well in the markets after its split from eBay. This news is accompanied by the growing uncertainty about Square's business. The Verge notes that “some ventures, like its Wallet app, haven't been as successful as Square hoped,” as well as Jack Dorsey's future with the company is uncertain.
Under the Jumpstart Our Business Startups Act, companies with less than $1 billion in revenue can file for an IPO with the U.S. Securities and Exchange Commission privately and work out the details with the sec without details being under public scrutiny.
Bloomberg also reports two important pieces of information about Square Inc.; the first being the company processed $30 billion in payments in 2014 and the second being the company's expansion into other services.
These services include lending loans and payroll processing. In May, Square announced a $25 million funding round from Victory Park Capital specifically to offer loans to business owners, which are repaid through a set portion of sales processed by using Square. Regarding the payroll services, Square released the service in June for Californian merchants, with expansion into other states in the near future.
