Square launched in the U.K. on Tuesday with the financial services firm on the lookout for further acquisitions, according to Chief Executive Jack Dorsey.
Square sells card readers that can be used on-the-go via a mobile device or in-store, as well as an accompanying app for merchants to see and analyze transactions. The U.S. firm is bringing over its contactless card reading hardware and software and began testing with a handful of merchants a few months ago. The launch sees the firm looking to gain a foothold in the European market.
"The U.K. is really interesting in that we see a lot of card usage through tap … Which is perfect for our new card reader," Dorsey told CNBC in a TV interview recorded ahead of the launch.
The founder, who is also the chief executive of Twitter, would not reveal how many merchants were on board for the test but said it was "enough" and across many different business areas from restaurants to flower sellers.
"There's over 5 million small businesses in the U.K. and we think less than half accept credit cards so we think the market opportunity is huge," Dorsey said.
'Meaningful' impact on revenues
Growth at Square has been steady and has impressed Wall Street with shares up over 46 percent in the last six months. Revenues in the fourth quarter of 2016 were up 21 percent year-on-year to $452 million while its net loss narrowed to $15 million. Dorsey told CNBC that the U.K. launch would have a "fairly meaningful" positive impact on revenues this year but did not give exact figures. The CEO also said that it would not increase Square's capital expenditure or dent its path to profitability, something the company is on the way to achieving.
"It's (profitability) always something we are driving towards but we want to make sure that we have a good balance between driving profit and investing in the company. Investing in the company means investing in more technology so we can continue and innovative and bring new products and features to all of our sellers. And as we do that we get to see more sellers and we get deeper relationship with sellers than we do have," Dorsey said.