Block opens a technology hub in Dublin | PaymentsSource

• Key insights: Block has opened a new office in Dublin, part of the company’s increasing attention to the region. 
• What’s at stake: Rivals including Stripe, PayPal and Adyen have also expanded merchant payments technology in recent months. 
• Forward look: Block plans to showcase product development in a “cafe” that will be open to developers and businesses.

With regulatory policy that has loosened Apple’s grip on digital payments, technology firms are boosting investment in Europe, including Block.

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The San Francisco-based payment company, which retains its Square brand for merchant-facing services, has opened a new office in Dublin, positioning the move as a “statement” of the firm’s commitment to the region. “Dublin is the natural home for Block’s European growth,” said John O’Beirne, CEO of Square International at Block, in a release. “This office represents more than a physical space – it’s a statement of our commitment to the region and our belief in the transformative power of financial technology. We’re here to drive meaningful dialogue on the issues shaping financial innovation, and to ensure that our ecosystem serves everyone, not just the privileged few.”

Block hopes to gain share in a region that includes Amsterdam-based Adyen, which has added payments technology and financial services to target small to midsize businesses in both the U.S. and Europe. Block’s U.S. rivals, PayPal and Stripe, are also increasing their product development in the EU and surrounding markets. These firms are all chasing merchants by enabling digital payments and mobile wallets, following Apple’s move to open its enabling technology under regulatory pressure.

“By creating a space for collaboration, learning, and dialogue, we’re showing that Block is more than a technology provider; we’re a long-term partner in Europe’s economic and financial ecosystem,” Block’s public relations office told American Banker in an email. 

The company’s Dublin office includes a product demo lab, workspaces, community engagement spaces and facilities designed to host cross-industry meetings on how public policy and regulations impact European businesses and consumers.

Square’s sellers, which include small businesses, merchants and vendors, will have access to technology developers to view products, and Stripe will recruit staff from Dublin’s technology community. Block has included a “cafe” to showcase technology and general payment products. This includes Block’s global music streaming service Tidal, its self-custody bitcoin wallet and point of sale and inventory management services. Block’s outreach to the public for product input includes the company’s launch of a Teen Advisory Council, whose members provide Block with input on new product design, usability, safety and product strategy. 

Block’s Dublin announcement also follows a partial retreat from the region. Block in 2024 cut services to the U.K., attributing the move to a broader strategy that emphasizes growth in the U.S. over global expansion. Block did not respond to questions about what appears to be a strategic shift in Europe toward greater investment. 

“Block’s presence here enables us to support our customers across EMEA, and places us at the intersection of innovation and regulation, where we can drive meaningful dialogue on how financial technology serves everyone,” Block’s public relations office said.

Block’s next earnings call is scheduled for Feb. 26. Block’s most recent earnings missed analyst expectations for net income and revenue. 

Analysts are largely positive about Block’s product development and international opportunity.

Analysts from Jefferies reported there’s “a particularly bullish outlook for international runway; and the quality of hardware is unmatched in international markets.” Jefferies added that international markets are now half of Square’s new volume added. 

In a research note, William Blair analysts said, “We have consistently highlighted a view that merchant processing innovation is a critical distinction. After lagging some competitors over the last few years, we think Square is on the front foot, as it accelerates product releases.” William Blair added Block is innovation at a “meaningly faster pace than traditional fintech peers.”