Hey @tonemanguitar. I can only sort of answer the first part of your enquiry. Square has not divulged their reasons for this and honestly they don’t have to. Since PayPal is a competitor in the card processing world, I’ve always been surprised that Square allowed payments this way, anyway. I’ve never seen any website/store host that had their own card processing that allowed cards to be processed by anyone but them.
That being said, is this a good move on Square’s part? Only time will tell. I’m sure they thought it through and came to the decision they felt was best for them as a company. Also, they do have shareholders who have more than a little sway in decisions like this. But, as this is a business decision, they don’t have to explain themselves. I definitely wouldn’t expect to hear any more about this, since ultimately the “whys” don’t matter. The fact is that they are ending their relationship with PayPal.
My other guess is that PayPal was charging Square higher fees than they wanted to pay to use them, or that PayPal no longer wanted Square to get a cut of their fees. Either is perfectly plausible as a reason.
As for us as sellers, it doesn’t have to have much of an effect on our sales. Most customers can just switch to using their cards through Square rather than using their cards through PayPal. It will be up to us to communicate with our customers (especially on our websites) with popups and such, so that no one is surprised — at least not for long.
Sorry to be so long-winded.
