Shopify moves to expand its business
Shopify (SHOP) has refreshed its POS (point-of-sale) hardware lineup in an attempt to better serve small business clients. The company has launched a new collection of POS devices that it hopes will simplify and speed up in-store transactions for small businesses and their customers. Shopify, mainly in the business of powering digital stores, operates a platform for building and running digital shops. Selling POS terminals is a way for Shopify to expand and diversify its business.
Shopify’s move to stir up competition in the POS hardware market
For Square (SQ), Shopify’s move could mean more competition for its hardware business. Square’s POS device business, its oldest, generated $18 million in revenue in the first quarter. PayPal (PYPL) also sells POS terminals for small businesses thanks to its acquisition of Swedish payment company iZettle.
Shopify’s revenue outgrows eBay’s and Amazon’s
In the first quarter, Shopify’s revenue grew 50% YoY (year-over-year) to $320.5 million, whereas eBay’s (EBAY) and Amazon’s (AMZN) grew 2.0% and 17% YoY, respectively. GoDaddy (GDDY), which also operates a platform for small businesses to launch and manage digital shops, reported revenue growth of 12.1% YoY in the first quarter.