Square Invoices Plus: New Paid Subscription Plan

Square to Introduce Paid Invoices Plus Subscription

Square’s widely used, complimentary invoicing software is evolving into a significant subscription-based service for the company. An announcement regarding a paid subscription tier, named Invoices Plus, is anticipated soon. This new offering will provide sellers with an expanded suite of functionalities, encompassing some features formerly accessible within the free version.

Alerts to Existing Users

Certain sellers currently utilizing Square Invoices have recently received notifications via email concerning these forthcoming modifications.

Details of the new subscription, including a comprehensive list of included features, were initially shared with a select group of sellers and are also available for review on a Square Seller Community forum.

Features Included in Invoices Plus

The Invoices Plus subscription will incorporate features released over the past year during a limited trial period.

These enhancements include multi-package estimates, customizable invoice templates, and the ability to add custom fields to invoices. Additionally, the service will offer automatic conversion of approved estimates into invoices and the creation of milestone-based payment schedules – supporting installment invoices with three or more payments.

Square intends to introduce a “trial” indicator alongside these features within the Square Invoices software, informing users about their impending availability.

Free Plan Remains Available

The existing free invoicing software will continue to be offered. Sellers will retain the ability to send an unlimited number of invoices, estimates, and contracts without charge.

Free users will also have access to invoice tracking, reminder functionalities, and reporting tools.

Revenue Model and Pricing

Historically, the free plan has generated revenue through processing fees, currently set at 2.9% + $0.30 per invoice paid online via check or debit card, with an additional 1% fee for ACH transactions, as detailed on Square’s website. Fees differ slightly for in-person and “card on file” transactions.

The pricing structure for the new, paid Invoices Plus subscription has not yet been publicly disclosed.

Rationale Behind the Change

A Square representative explained the reasoning behind this shift on the community forum. They highlighted that many of Square’s other products – including Square Online, Appointments, Square for Retail, and Square for Restaurants – also operate on both free and paid tiers.

While processing fees contribute to Square Invoices, they are insufficient to sustain ongoing product development. (A portion of this statement was later retracted by Square.)

The goal of Invoices Plus is to enable Square to compete more effectively with established, paid invoicing applications and their advanced feature sets.

Confirmation from Square

A Square spokesperson confirmed to TechCrunch that Invoices Plus is a subscription service planned for imminent announcement. However, further details are being withheld until the official release.

Recent Financial Performance and Acquisitions

This new service launch follows Square’s recent earnings report, which revealed $1.31 billion in revenue from its seller business (out of a total $4.68 billion) and $585 million in gross profit for the second quarter, fueled by continued growth in online sales.

The company also announced its intention to acquire Afterpay, a leading buy now, pay later provider, in a $29 billion deal, demonstrating its commitment to expanding its presence in the broader payments landscape.

This acquisition provides Square with an opportunity to integrate its various products, allowing Afterpay customers to manage their installment payments through Square’s Cash App.

Potential Future Integrations

Further integration between Square and Afterpay is a possibility, as hinted at by Square in a response to a seller on its community forum. A representative updated an earlier response to announce the acquisition, stating that specific integration timelines are currently unavailable.

References to the new subscription have also been discovered within the code of the Square app by iOS developer Steve Moser. The code suggests that users who previously accessed the paid features will be able to continue doing so for a limited time.

However, as the announcement clarifies, sellers will not be able to utilize the paid features indefinitely without subscribing to Invoices Plus when creating new files.