Transactions accounted for the largest share of Square’s annual net revenue, followed by subscriptions and services-based revenue. As the company started to process more transactions, Square's gross payment volume began to increase. In 2012, the San Francisco-based company had a gross payment volume of approximately 6.5 billion U.S. dollars. This figure increased to 84.65 billion U.S. dollars in 2018. Besides the increase in transaction volume, specialists affirm that both retention of existing customers and successful product launches have driven the growth of Square’s gross payment volume in the last few years. The retail industry is one of the most important markets for Square. As of June 2018, the service industry accounted for 45 percent of Square’s gross payment volume. Food and drink related sellers followed second with 25 percent of payment share, while the retail industry had the third largest share.
Mobile and digital payment is a rapidly growing market. Consumers in the United States are interested in many mobile payment services and activities. In 2017, about 69 percent of Americans stated that they were interested in using their phones to stop unauthorized transactions. Nearly 50 percent of U.S. consumers said that they were interested in transferring money to another person, such as a family member or a friend, also called peer-to-peer (P2P) payment. In 2017, 63.5 million U.S. consumers used peer-to-peer payment apps. This figure is projected to increase to 113.5 million users by 2021. Square has its own P2P service called Square Cash and ranks third behind its two main competitors, PayPal and Venmo, based on the number of mobile users accessing their individual payment app.