Why Square Is the Netflix of Merchant Services

Every time I talk about Square, I hear the same criticism.

"Square is just the shiny new object."

I think people saying that are missing the bigger picture.

Because this isn't about a new payment processor.

It isn't about a new terminal.

It isn't about a new pricing model.

And it certainly isn't about chasing the latest trend.

This is about recognizing one of the biggest shifts the merchant services industry has experienced in decades.

The best way I can explain it is through an analogy almost everyone understands.

Blockbuster, Redbox, and Netflix

Blockbuster didn't lose because somebody built a slightly better video store.

Blockbuster lost because Netflix completely changed the model.

Before Netflix, companies competed by improving the existing system.

Bigger stores.

More inventory.

Better locations.

Longer hours.

Then Redbox arrived.

Redbox was more convenient than Blockbuster.

It was a better version of the old model.

But it was still the old model.

Netflix wasn't a better video store.

Netflix eliminated the need for one.

That distinction changed everything.

And I believe the same thing is happening inside merchant services today.

Traditional Processors Are Competing Inside an Old Model

For decades, the merchant services industry has focused on:

• payment processing

• rates

• terminals

• statements

• merchant accounts

Every year the conversation sounds almost identical.

Who has the better pricing?

Who has the lower rate?

Who has the better terminal?

Who has the better compensation plan?

Meanwhile, business owners are focused on something entirely different.

They care about:

• increasing revenue

• improving operations

• retaining customers

• simplifying workflows

• managing employees

• improving cash flow

• growing their business

Payment processing is only one small piece of that puzzle.

Yet much of the industry still acts as if payment processing is the entire product.

It isn't.

Payment processing is becoming a feature.

Many POS Companies Are the Redbox Phase

To be clear, many modern POS systems are significantly better than traditional merchant processing systems.

They offer:

• cloud reporting

• better hardware

• online ordering

• mobile access

• inventory tools

But many are still fundamentally operating inside the same framework.

They're trying to build a better payment processor.

A better terminal.

A better POS.

A better version of the existing model.

That's exactly what Redbox did.

And for a while, it worked.

But being a better version of an old model is very different than creating a new one.

Square Is Building a Business Operating System

This is where Square separates itself.

Square is not trying to become the best payment processor.

Square is becoming the operating system for businesses.

Think about what now exists inside the Square ecosystem:

• Payment processing

• POS systems

• Websites

• Online stores

• Online ordering

• Loyalty programs

• Customer databases

• Marketing automation

• Payroll

• Team management

• Appointments

• Banking

• Square Checking

• Instant Funding

• Capital access

• Reporting

• AI-powered insights

At some point, this stops being a payment processor.

At some point, it becomes business infrastructure.

And that is exactly what I believe Square is building.

Modern Commerce Systems Are Replacing Traditional Merchant Services

One of the themes I discuss extensively in my book, The New Rules of Merchant Sales, is that business operations are consolidating.

Businesses increasingly want:

• one ecosystem

• one dashboard

• one login

• one source of truth

They do not want:

• five software providers

• three reporting systems

• separate loyalty platforms

• disconnected banking tools

They want everything working together.

This is why I believe modern commerce systems are the future of merchant services.

Not because businesses suddenly care more about technology.

Because they care more about efficiency.

And integrated technology creates efficiency.

Download The New Rules of Merchant Sales here:

https://ebook.ezdirectsales.com

Why This Matters for Business Owners

Most business owners don't wake up thinking about payment processing.

They wake up thinking about:

• payroll

• staffing

• inventory

• customer retention

• marketing

• profitability

Square increasingly helps solve those problems.

That is a fundamentally different conversation than discussing rates.

And that's why I believe businesses are increasingly choosing ecosystems over processors.

Why This Matters for Merchant Services Professionals

Most merchant services professionals are still competing on rates.

Meanwhile, Square is helping businesses:

• improve operations

• automate processes

• retain customers

• improve cash flow

• centralize management

Those conversations are dramatically more valuable.

Because business owners care more about solving problems than saving a few basis points.

The future of merchant services belongs to professionals who understand where business operations are heading.

Not where they have been.

Who Moved My Cheese?

One of my favorite books is Who Moved My Cheese?

The lesson is simple.

When the environment changes, you can either complain that the cheese moved or go find where it went.

The merchant services industry is changing.

The cheese is moving.

Some people are spending their time defending the old model.

Others are adapting to the new one.

I know which side I want to be on.

Why I Believe Square Wins Long-Term

I do not view Square as a shiny object.

I do not view Square as a trend.

I view Square as the logical direction the industry is heading.

Not because they process payments.

Because they solve business problems.

The companies that solve business problems will win.

The companies that simply process transactions will continue becoming less relevant over time.

That is why I believe Square is positioned to become one of the most dominant commerce technology companies of the next decade.

Not because they are a payments company.

Because they are a technology company that happens to process payments.

Want to Experience the Ecosystem Yourself?

The easiest way to understand Square is to see it firsthand.

You can create a free account and explore the entire ecosystem with no obligation.

If you think there is any chance you may use Square in the future, I recommend creating your account using your actual business email so it is already associated with your business.

Create your free account here:

https://squareup.com/i/3630D3517B

You can also learn more about our Square Partner organization here:

https://modern.ezdirectsales.com

The biggest opportunities rarely come from chasing trends.

They come from recognizing industry transitions before everyone else does.

Frequently Asked Questions

Why is Square being compared to Netflix in merchant services?

Square is being compared to Netflix because it is not just improving the old payment processing model. Square is changing the model by building a full business operating system around payments, POS, banking, automation, and customer tools.

Is Square just another payment processor?

No. Square is more than a payment processor. Square combines payments, POS systems, websites, loyalty, marketing, banking, payroll, appointments, online ordering, and AI tools inside one ecosystem.

Why are traditional processors being compared to Blockbuster?

Traditional processors are being compared to Blockbuster because many still focus on the old model of rates, terminals, applications, and merchant accounts while technology companies are changing how businesses operate.

Why is Square important for merchant services professionals?

Square is important because the industry is moving from selling payment processing to helping businesses solve operational problems with modern commerce systems.

What makes Square different from newer POS systems?

Many newer POS systems improve the old model, but Square is building a broader ecosystem that includes payments, banking, customer retention, websites, AI, and business operations.

Can I test drive Square before using it?

Yes. You can create a free Square account and explore the dashboard, reporting tools, automation features, payment tools, and modern commerce ecosystem with no obligation.