Mizuho Securities analyst Thomas McCrohan called Square "the Tesla of payments," encouraging investors to buy shares of the payment processing company.
Drawing a comparison to the young and innovative automaker, the analyst said Square is approaching payment processing with a "Silicon Valley perspective," revolutionizing the way small businesses participate in point-of-sale transactions with a small dongle and a software platform.
"Square is selling solutions, trust, and digital expertise otherwise unavailable today by the majority of payment processors the lead with single point card processing solutions," wrote McCrohan in the Wednesday report. These additional services lead the analyst to believe the company will gain significant share from traditional payment processors.
Founded in 2009 by Twitter founder Jack Dorsey and Jim McKelvey, Square markets several software and hardware payment products and allows users to accept offline debit and credit cards on their smartphone or tablet.