Lesson #4: Harness network effects in data
Monday, September 23, 13
When I ﬁrst talked to Jack Dorsey about Square, he talked about it as a data business - using social network data to make better
credit scoring decisions. Long term, once square has millions of participating merchants and consumers, they have built a
powerful data system that literally gets better the more people use it. But even apart from this banking angle, think how Square
transforms the way a small merchant operates, bringing “knowing your customer” to a new level. Square has my face, my credit
card info, and, potentially for a repeat buyer, my preferences, like what kind of coffee I normally order.