Square rebrands as Block as it looks beyond payments

Square's product diversification is taking it well beyond the four-sided card readers it has offered for over a decade. Its new name, Block Inc., is meant to reflect that transformation and signal even more to come.

The rebrand comes two days after Square CEO Jack Dorsey resigned as CEO of Twitter. That decision potentially frees the executive to focus more on Square's deeper moves into financial services, Bitcoin trading, alternative credit and social commerce as the company competes against legacy payment firms as well as newer technology companies like Stripe.

“We built the Square brand for our Seller business, which is where it belongs,” Dorsey said in a press release Wednesday. “Block is a new name, but our purpose of economic empowerment remains the same. No matter how we grow or change, we will continue to build tools to help increase access to the economy.”

The company also said the new name is associated with "building blocks, neighborhood blocks and their local businesses, communities coming together at block parties full of music, a blockchain, a section of code, and obstacles to overcome."

Bloomberg

Square did not comment on the move beyond its press release.

While Square's roots are in offering payment acceptance hardware to micro merchants, it has added services for both consumers and larger businesses, including credit and business management products such as digital scheduling and mobile ordering.

Much of the product expansion is built on Square's Cash App, a peer-to-peer system that's the basis of Square's support for Bitcoin trading — which provides more than 70% of Square's revenue. Cash has also supported Square's moves into contactless payments and incentive marketing.

Square debuted a financial services division earlier this year after receiving an industrial banking license. Additionally, Square is in the midst of a $29 billion acquisition of the buy now/pay later lender Afterpay to expand its point-of-sale credit offering for both merchants and consumers.

In March, Square acquired Tidal, a music streaming service led by Jay-Z, and it is developing a Bitcoin division called TBD.

The legal name Square Inc. is expected to officially change to Block Inc. on or around Dec. 10, and the New York Stock Exchange ticker symbol SQ will not change "at this time." There will be no organizational changes, and Square, Cash App, Tidal and TDB will keep their branding, the company said. Square Crypto, however, a separate initiative to advance Bitcoin, will be renamed Spiral.

Square's move comes about a month after Facebook changed its name to Meta as part of a similar strategy to move beyond its core social media model.