Square reduced merchant onboarding from weeks to instant approval for 93%
Keith Rabois · 20VC: The Opendoor Memo: Keith Rabois on The Origins of Opendoor from a Conversation with Peter Thiel, Why Cash is Not a Competitive Moat for Startups Today and What People Misunderstand About Black Swan Events in Real Estate and How it Impacts Opendoor · Sep 30, 2021 · at 22:01
Keith Rabois, General Partner at Founders Fund and former executive at Square and Opendoor, details how Square disrupted traditional merchant payment processing with automated underwriting.
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“Before Square, people sometimes forget, before Square in the United States to get access to the credit card infrastructure. You can apply, in quotes, for a merchant account And that would take three weeks. It would require a credit check and a manual investigation, you know, a lot of processes and Square just made it immediate for everybody. 93% of people could instantly be gratified and accept credit cards, Visa, MasterCard, Amex instantly.”
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