Square’s popular free billing software is shaping up to be the company’s next big subscription service. The company is set to announce a paid subscription offering called Invoices Plus, which will provide sellers with an advanced feature set, some of which were previously available with the free service. The service itself had been quietly presented to individual sellers, but has yet to be publicly announced.
Some sellers who were already using Square Invoices were recently alerted to the upcoming changes via email.
In the announcement shared with some sellers (details of which can also be seen here on a Square Seller Community forum), the new subscription will include a series of features that were released last year as part of a limited trial.
This includes multi-packet quotes, custom invoice templates, and custom invoice fields. These will now be part of Invoices Plus, along with two other features: the ability to automatically convert accepted quotes to invoices and the ability to create milestone-based calendars (invoices with three installments and more). Square’s announcement indicated that it would introduce a “trial” button next to these features in Square Invoices software to alert customers of upcoming capabilities (see below).
Square’s free billing software won’t go away, the announcement noted. Sellers will be able to send unlimited invoices, as well as quotes and contracts for free, with the free plan. Free users will also be able to use invoice tracking, reminders, and reporting tools.
The free plan has historically relied on processing fees to generate income. Right now, that’s 2.9% + $ 0.30 per invoice paid online by check or debit card plus a 1% fee per ACH transaction, per Square website. (The fees are slightly lower for in-person transactions and slightly higher for “registered card” transactions.) The price for the new paid subscription has not yet been publicly announced.
A Square employee explained the reasoning behind the change on the community forum site. They noted that many other Square products, such as Square Online, Appointments, Square for Retail, and Square for Restaurants, also offer a free and paid tier. And while Square charges a processing fee for Square invoices, they are not enough to fuel its product development. With Invoices Plus, they said, the company aims to compete more directly with paid invoicing applications and products and the more advanced features offered by those products.
Contacted for comment, Square confirmed to TechCrunch Invoices Plus that this is a software subscription that the company plans to announce shortly. But the company was unwilling to share more details until the news was official.
References to the new subscription have also already made their way to the Square app code, where they were spotted by iOS developer Steve Moser. The code says that users who previously used some of the paid features will still be able to use them for now. But as the announcement also noted, sellers won’t be able to use the paid features for free the next time they create new files with Square Invoices.
The new service arrived shortly after Square announced its results, where it noted that its sales activity generated $ 1.31 billion in revenue (out of a total of $ 4.68 billion) and $ 585 million. gross margin dollars in the second quarter, in part due to continued strong online growth. . The company also announced plans to acquire the Buy Now, later pay giant Afterpay in a $ 29 billion deal, signaling interest in pursuing the broader payments market. The deal also gives Square a way to connect its various products by allowing Afterpay customers to pay their monthly installments through Square’s Cash app, the company said.
One could also imagine an integration between Square and Afterpay. This is something Square also hinted at in a response to another seller on its community forum site, where a representative updated an older response to share news of the acquisition, adding that Square does had “no onboarding timeline to share at this time.”