Because we know he often uses the other platforms. Jack i have never been asked that question. Lauren really . We are off to a great dark. Obviously if you dont know, things are secure, and we dont see the world react if it does area and in all seriousness, people here know what square is and what it does and of not, you just saw that nice introductory video. You do have an idea. You recently had a pretty positive orderly earnings report. Your stock is up 96 yearoveryear. You are starting to make money on things like peertopeer payments. How much are you profiting monthly . Jack monthly i dont believe we give out those numbers area lauren you can give it out now if you like. [laughter] jack i could, but i wont. You startede square, nearly a decade ago, nine years ago, what has been the most significant or surprising change you have seen happen . In our in jack business or the industry . Lauren both. Jack both. Having started, we were we are having an offsite today and tomorrow. We have been discussing a lot of the companys history and where we are going and one of the things we started with is we are trying to solve our cofounders problem, he could not accept a credit card. He got fixated on building a device that you could plug into a smart phone that could accept smart phones. It definitely worked for him and resonated with him, but we wanted to see if it resonated with others as well. I was working at a studio apartment in San Francisco. We went down and there was a flower cart under my apartment. We noticed she wasnt accepting credit cards and we asked her, you will accept credit cards . She said no, its too complicated, they are too expensive, i hate them. We said, ok, and we came back next day, very persistent and said what about today . We did this, we made it work differently, you wont accept them today question mark she said no, i tried to, i went to a bank, they denied me. So leave me alone. We went back in the next day we went down to ask it she would accept credit cards and she again said no, stop asking me the question. Do you want some flowers . Went back and forth. This time we just watched. We just watched what she was doing. We saw a guy come up and he wanted to buy some flowers. Card. Ded over a credit she said, i dont accept that, but there is an atm around the corner and you can go get some cash. We watched him walk away, he went around the corner and we waited for five minutes. And then we waited 10 minutes. And then 15 minutes. The guy never came back. My cofounder, jim, asked russian , do you want to make this sale. She said, yeah. I will accept credit cards now. That was the big insight for us. It wasnt that we were building a credit card machine. It was that we were enabling someone to participate in the economy in the first lace. And to be able to make the sale. When we change our mindset about helping someone make a sale instead of accepting credit cards, we could suddenly do so many Different Things to help them make the sale. Scoring capital to give them a loan of 6,000, to help make more sales, then the universe was so much bigger than we originally thought it was. That was probably the Biggest Surprise for us. And the biggest joy in the business, just those moments when we realized it wasnt just as mechanical thing that had so much more potential. Industry, you know, i, like i imagine a bunch of you, when i was a kid i spent a lot of time on usenet. I really liked the altar subs. Cyberpunk. S oldof the dreams of cyberpunk was Digital Currency. It just felt like such a faraway reality and a faraway dream. The fact that we have seen not just an adoption of it, but i think one of the most seminal works in Computer Science in the decade, thest Bitcoin White paper, is amazing. Its amazing that we have the technology, now, that connects you once again to distributed, decentralized something fundamental and in this case a ledger. Which allows trust. That impact the business, the industry, and a big part of how we live together, work together, trade together. So, yeah, im really excited about learning from it, first and foremost. And figuring out how to do what i think we did well in the early days of square, which was help people access the Financial System in the first place. We were talking with merchants that werent even able to participate, they were being denied. To of people who applied collect credit cards, we took that number up to 99 . Accept theble to kind of payment that people wanted to use meant you got to participate. Have asked thewe question, again and again, how can we continue to build simple tools that empower people in the economy to make them more wholesome contributors . We are not going to fix everything, but we will contribute a small bit. Lauren i remember interviewing you in the early days of square. The wall street journal the value published at the time was margin side. Making the sale on the consumer side, there was still a little bit of that. You dont have the cash, you want to buy something, make it frictionless. In this short amount of time, people were talking about peer to peer legitimate is this, a cashless thing. I want to talk more about the coin. I love talking about peertopeer, so i would love to talk about that first. This is something that you are now saying youre starting to make money off of. How significant is that . Jack i guess the other really hard thing for us in those days was we werent our customer. What i mean by that is we were not sellers. We are not flower sellers, affee sellers, we dont own restaurant. When you are your customer and you are building for yourself, its pretty evident what you need to do next, like what others you, when youre not the customer you have to ask a lot of essence. One of the things that was was themportant to us realization that while we are not the customer, we are the customer of our customer. We love places like lou bottle. To go up to the counter, we are not there to pay or have a transaction. We are there to actually get a coffee and drink it. How do we take that away completely . That ising thing about miss is that the business is inherently there. We get a transaction fee every single time someone swipes a credit card. Every time we help a seller make a sale or grow, our business grows and we can help more sellers grow as well. We can also as we grow take on things that we want to fix. Cash represents a desire to build something for ourselves. Honore either basis it was about fixing a problem we were having. The problem being that we wanted a simple, open, and fast way to send money to each other. That was it. There were certainly solutions out there. We didnt love them. Because of the amount of work that one had to do to sign up. The speed that it took. Jack 6 Lauren Services like venmo, paypal. Thing, paperle cash, western union. Make sending money as easy as me just telling you heres five dollars. When we first started, we really put some pressure on ourselves to, like, how do we how can i square cashemail in and in the subject line have five dollars with money transferred . The challenge was how do we make that secure . You mail is inherently unsecure. That really made us rethink everything. Secure, weake that thereally take down some of identity barriers that normal services have to go through. We can make it feel like cash. Im just saying im giving you five dollars by writing it out and that money is transferred automatically. The other thing is it has the network of email, which is infinite. So, we started there, and then wemade it to an apple and took that same concept of making , andel easy, simple, free fast. We have to figure out how to support ourselves doing it, making it into a business. There were a few things we realize along the way area one, people will pay to hurry things up. Access tol pay to get their money. Thats one thing that we offer on the seller site and individual site. Nextu own a bank, it goes is this day, but if you do its instant. We also get paid if we enable people to spend it in different ways. In whicha store value they could store money and put a virtual card on top of it so that they could spend money with it and every time the card was used, we get paid not by the , but by the banks and Financial Networks. There is no tax. You dont haveif a bank account or want to find your account through credit card, we take a transaction fee for that as well. All three of those have added up contributing a pretty meaningful amount that we are proud of and that we can extend. And we have diversity in as well. If one fails or diminishes in some way, we have two more to lean on. We started the project, as we did with square, noting the network as fast as possible. Then we will figure out how to make it work. Make it work means figuring out how to fund it, giving it its own oxygen. With square that decision was 2. 75 . An acceptance of 2. 75 . Most merchants get charged anywhere from 1. 692 7 . Its called the interchange. Price is not dependent on the merchant, its depending on the car the buyer is using. Oftentimes the rewards that you have on your card, the merchant is actually subsidizing those and they have no idea. We decided that was way too complex, no one really understands it and it is pushing people out of accepting credit cards in the first place, so lets just simplify it down to one price. In making that decision we knew that for the next at least two wers, if not three years, would be losing a lot of money. Would beuld, that losing so much money that we could go out of business. But we believed in ourselves enough, and we believed in the network that we believed we could make it work. Our business turned transaction profitable. Lauren is that kind of the way the you see peertopeer . Will make money at first but then it will . Looking at what other people are doing in terms of gateways to other services that are more important or if you see it as ething that will involve evolve. I think that peertopeer is pretty fundamental. If i could pull out my card and use that money at a coffee store , those two things are linked and the simpler that we can make that so that people dont have to think about different systems, the more it will be utilized. I dont see it as a gateway, necessarily. It is an annoyance that we can fix. We can make it easier and make it more fair, more useful. Ofwas not ever a question being able to monetize this as peertopeer. Its something that one cannot monetize. Its one of those things that people value and networks value utilizing the network and handling risk. We get paid on that side, too. I look at squares offerings right now. You have a loan, part of your business, and are allowing people to, within square, make deposits and pay for things. You now have a physical, prepaid card you are shipping to people. I have one. Jack i know you know where you are going with this. People i think a lot of do. But the fdic insurance, transactions . Jack no. Our bank artwork is. Partner is. Lauren ok, so aside from that and offering interest as far as , you areces being held getting closer to a bank. Is square going to become a we have a lot of peers in the industry to said they went out to kill the Banking Industry and cash as a concept. We have always taken a different mindset, a form of partnership mindset. We believe, you know what . What they have is useful. Its useful. But its not successful. Its not always fair. It hides a lot of information, which encourages negative behaviors that take fees from people. Some of that is why design. We saw that and wanted to make sure that we were building something that was fair. That extended the reach of the Financial Network to as many people as possible, enabling as many as possible to participate. We dont need to become a bank to save a trip to the bank. We saved a trip to the bank the first time when we said you dont need to go to the bank to start to get a merchant account. You can go to the app store and you dont even need to sign up for a merchant account. Just signup to where we can ship your reader and you are done. That saved people from having to go to bank. The second bank was with Square Capital loan. Wereally thought that we competing with Financial Institutions for a while, competing with lending love, on deck. Areof these people who lending. We realize the bank cant make money from a 6,000 loan. We again looked at what are we actually competing with, when a merchant or a seller needs a 6,000 loan . Where are they going if its not too a bank . They are going to friends or family. They are going to their friends, their parents. They are asking for 6,000 to grow their business. That is who we are competing with. Family to friend or get a bit of money. They dont want to go to a bank and have it that. They just want the right amount. That wasnt being served. A can do it as we have such deep understanding of our seller. Applicatione it an process. You get an email in your inbox saying do you want to thousand dollars or 10,000 . Showing that it was paid back automatically. We dont need to take over a bank to do that. Lauren so, its different from traditional banking and lending. Any of the other big traditional companies, could be someone like yourself, apple, amazon, they have huge cache files to establish trust with customers. Are considered to be primary commerce engines. Do you think its possible that in the next five to 10 years we could see these companies become banks as we traditionally know them . Jack i think the definition of a bank will evolve rather than Tech Companies becoming more like banks. Currencies digital will change the definition as well. When you dont have particular parties to control the currency or control the gates, it requires a new definition. In florence, it hasnt evolved that much. The technology hasnt evolved that much. I do believe that what we have now in the block chain is a step function that allows for a pretty dramatic elevation. That we really need to study how this Impact Society and how it impacts our business and our industry. And weauren lauren unbanked as well. How orton is that category . There was a recent report that the gulf in the world has no sort of formal banking theyre using. A lot of these are already catering to the bigger population in certain areas. Are you looking at expanding into other markets . Jack so, i mean, i think there is a sick thinking issue in the United States. Not just with unbanked, but the underserved banked. The under when we started nine years ago, we were finding people who were being denied Merchant Services and accounts from banks because of the credit. Hadonly instrument the bank to bet someone was a credit check. It wasnt a strong indicator of performance or risk tolerance for the seller. So, those with the first things we said we were not letting people through. We needed to figure out another way for that identity. We also took on another mindset, that we were going to invite everyone in, watch and observe, and see negativity we will ask them to leave, as opposed to no one gets in a must to pass the test. O, we just change that a bit it was a big part of our success. Seen underserved sellers and with square cash we have seen a lot of underserved individuals as well. We have evidence to show that both are coming onto square cash, downloading the app, and they are using us as a primary spending device. In some cases they are not even linking a bank account or credit card. They are coming to us and they have a stored value account. They request money from their parents or their friends and we can issue them a physical card now and that is what they use. I do believe that we have the potential of reaching more of the underserved and potentially the under banked as we get better and better at having an onboarding process that allows for more people. I think our process is pretty good right now. One of the things you will notice with square cash is that it doesnt require a password. We figured out that to provide a secure peer to peer network and a spending instrument, without requiring a password, that was because he started with his female concept. It is very innovative and it makes them feel much faster and feel like paper cash. We get newer technologies like the block chain currency, that security goes up. The speed potentially goes up, there is a lot more work to be done to get there. The trust also goes up. That is the most important thing , to provide Financial Services so that people actually trust you. Trust comes from transparency, from being honest, from realizing its never too late to do the right thing. Making sure we are serving our customers in that right way. More urgente the principles for us. Lauren but your focus on the unbanked right now is primarily in the states . Jack its in the states because we feel there is a lot of work to do here. A lot of, you look at, for instance, an innovation that is hugely inventive. It is using a whole different basis of currency as well. As we look at a market like that, where do we add value . Its not clear right now. We want to be in places where we believe we will have some efficient lu and right now its in the markets we are in. The u. S. , canada, u. K. , japan. Time you could start accepting credit cards without doing an in person 30 minute interview with a government agent. You had to set up a whole interview lauren just to accept credit cards. Jack just to accept them. The amazing thing about japan is that there is zero fraud. We do it all the time in the United States, obviously, and we had one case of merchant fraud in japan. It was negligence and he apologized to us and said, can i pay you for my mistake . Now its ok, youre the one case five years. [laughter] lauren what was the item purchased . Was i dont even know, it just him being naive about something. We have a system to detect everything, so we are good. Market isevery completely different and if we think we can add value, we will, but right now there is so much more to do here. In this country, especially. Especially around peertopeer. Lauren you are in a block chain right now. You have mentioned it a few times. Jackfirst im going to put you n the spot and asked you to identify block chain for people who dont have a grasp. How many people feel that they are familiar with block chain and what it is. Asked to host a breakfast on block chain and i said yes and then several hours before the night before i tried to understand it. Why not illuminate us, please . Jack one simple way to describe it, a database. Like we have seen with most interesting technologies, gets more empowering when it gets more decentralized. If there are fewer gatekeepers, so our capability to coordinate disparate machines all over the is our understanding of and ourrdinate data understood understanding of is to coordinate computing shared and cloud computing. Unlock wast big this concept often thought of an accounting terms. Terms, but cang be applied to so much more, thats the ledger. It enables proof of work and in anof one entity untrusted network. The same thing we have created with the cloud and the internet. Assuming a hostile or mistrust of the network, we can still value creation. Thats how i would define it. How does it make the work more efficient . How does it make the work distribute trust . When you talk about distributing there are sontity, many problems that we can help than are not just related to finance, but finance is an obvious one. Lauren i saw a quote , that lockchan is the internet, but point is one version of the transaction that is occurring. I want to back up a bit specifically talk about big coin. Jack one of the principals was we were going to help the seller make the sale. Whatever form of payment came across the counter, we would if it wasm to a set. Just credit cards, we would it cash,p them except checks, they should never have to think about what someone is using to pay them. The buyer should never have to compromise on what they want to use or have access to. We build acceptance into our Online Stores so that anyone of our customers going to our Online Stores could use it coin to purchase. Back then a lot of the sellers were selling candles and bags of stuff, so wese and saw, like, two or three sales per day. It was interesting. We dont know if it was this principle that we had, but it wasnt enough to really say that we need to shift focus towards this. Recently, one of the most surprising things that i have , i am from st. Louis, missouri. I have a lot of friends and family not into technology. I was a i am effectively i. T. Support my go home. I fixed the fax machine. Over the holidays one of the keptans questions i getting asked by people i know and met around st. Louis was you work in technology, finance, how do i buy big coin . I asked why do you want to buy big coin . Bit coin . They said they heard it was a fast and easy way to make money. So, you want to treat it like an investment . Yeah, they said, someone treats it people treat it like digital gold. How do i do that . Howas just so amazing mainstream the brand is. Its not about currency at all. Its investment. One of the things about the paper is the fact that one of , to toshi wanted to put it out there, it was going to incentivize saving instead of spending. Group, i to, or this shouldnt say he, wanted to create a deflationary currency. Which meant that it had to be finite. It might go up in value as a scarce resource. People have actually graft onto this concept. It is kind of like gold. This weird Digital Asset that i dont know how to buy, but if i do it, it will have ups and downs and the trends will be up. If i stick with it and purchase , it might take a bit and then i can sell it. To me that is fairly fascinating. Lauren sorry to interrupt, do you agree that bit coin or any type of crypto currency is a new gold . If i have to know agree, thats a people are using it right now, the market is telling us thats what its being used for. Have i bought some . Yes. Do i treat it like that . Yes. Lauren how much have you bought . [laughter] jack not as much as others i have heard of. I thought about buying some infinite i spend it at this coffee store . , what would that be like . Store . What would that be like . If i purchase a three dollar coffee today, two weeks later it could be 100 and even most expensive coffee i ever bought. But thats not how people are using it today. Interestinghe question. What job is it serving for people today . Its a quick way to potentially make some money. And its cool, its interesting and new. Its different from the stock market or other securities, or gold. Someone today in the offsite described gold as a stupid rock. I guess to a generation coming in to the space, it is, they dont fully understand it, but they want to and they should ask more questions of that. One of the bigger implications of having a crypto currency out there in the world that is not government act, owned in any way, that anyone accessthe world can lose to this trade in a secure way, it . Thinking about the geopolitical. Mplications you would wanted to be free. You would want it to be convenient, like it is with digital. Those are the attributes i value the most. For those in need to speak and assume them in an anonymous or take action in that way, its important. And i generally believe in any technology that lets people see that we are all in this together as a civilization. As soon as we can remove the barriers put up between us, which we have seen with , and ication and media imagine we will see with money and currency in our lifetime. Continuing to recognize and acknowledge that we are all facing really big problems that we need to focus on, like the environment. Like increasing our health span. Economic disparity and allowing others to participate more fully , was a massive and require our attention instead of all of these distractions that we put in front of ourselves. And they could have spent more time on more meaningful things. Hats the idealistic positive we need to make it practical and build bridges to get there. They are all possible. Lauren distractions like twitter . [laughter] lauren certain people on twitter, perhaps . I want to ask you a question about block chain. There has been some discussion about whether it could be utilized outside Financial Services. I saw a news report the other day that china is potentially using block chain stupid like taxes and is working on its own Digital Currency and has been for a while. Thats still in Financial Services in a way. Are there other things it could be done as block chains . There will be a bunch of people saying we need to apply it everywhere and try to solve every problem with it. With sheenry problem learning. We need to be more thoughtful. What are people struggling with . How does the technology distract them . Besides sharing because i cofounder, she didnt struggle with cards. Excepting the payment devices that they would use. Those are the questions that we would ask for. There was a report not too long ago about spotify required acquiring a block Chain Company to help with its distributed payouts. Thats a super creative solution to a real problem that the company is obviously struggling with and is very mechanical. And can be fixed by the distributive ledger. What are the problems we can create more efficiencies around . Lauren people saying that you are using block chain just because you are using block chain. Are you . Jack i hope not. Lauren we will be getting to audience questions momentarily, but i wanted to ask you questions about twitter, hooting how you are currently spending her time. I know that you get asked this a lot. You are also a chair on the board of disney. Jack not chairman. Bob is chairman. Lauren so, how are you spending are you dividing your time evenly now between square and jack its easy to go back to time, in the early days it was a matter of time for me, but its really what we do with the time. To me its a russian a focus and what we are actually spending our time on. 50 of my time here and 50 of my time here. Its like, are you spending this one hour on the time we have and are we focused on the most important thing now and if not why are we talking about it . Morelows for a lot stability in my schedule. I want to get to the answer of like what is the most important thing right now that i need to be thinking about and spending my time on,s talking with people about time on, talking with people about, and if its not the most important thing, why am i talking about it . It just goes back to that ultimate constraint of only having so many hours the day and so many days on the planet. Am i doing something i feel proud of and that is meaningful . Thats, thats how i balance things. Its just really understanding what my priorities are, understanding what matters and what does it matter, having people around me who are you , or if theys up disagree with what i think matters, both at work and in my personal life, too. Jack Square Lauren square is doing well, twitter has its own struggles. Feel in some ways that you are prioritizing things different way. Struggles the twitter has . Jack they have different needs and are in different phases. I will do whatever it takes to help make both live up to their potential. They are Enduring Companies that i want to set up so that they outlive me and are not dependent on me. Thats what im focused on. Humans,iduals and as sometimes we are going through a lot of really bad stuff. Sometimes its good. Approachnly change our , putting things into focus. Focusing on one thing doesnt mean it you completely lose itht of something else. Doesnt feel obligated to me. We have a shared sense of what matters. As long as we have that in our holding ourselves accountable. We are doing the right thing. Lauren it seems as though there have been a lot of vitriol on twitter in recent months, right . From high profile people, some of it is just happening happens rid you it seems are constantly caught up in, people are saying, you should kick the president off twitter. And then people say that goes against freedom of speech. There has to be something you are grappling with. I remember last december at the coding event you said it was complicated. Thinking involved at all in recent months . Jack as my thinking involves of it being complicated . Lauren more or less. We areave to hold a service. Were a company. We have published rules and we have to hold every single account to them independent of who is behind them. Said, i do believe that the see, the morend we see our leaders act we can hold them accountable. I would rather that be in the open them in the dark. Than inin the dark the dark. The constraint on that is actions inspired by reading and sharing those thoughts. Toont know many other ways solve that than by shining as much light as possible on it and having as open a conversation about it so that we can get to a common understanding faster. Look, we are pushing ourselves to learn as quickly as possible. As the rest of the world is. On how to deal with the velocity of the technologies we now have. What hashat has changed so fundamentally, it is just speed. Technology is a tool that helps people do things faster. That can be scary at first. But it also has the potential to save a bunch of time and effort. And positivetimist and i am an idealist. That openness and transparency can help us realize, we are all in this together. We need to come together. All these barriers that we put up, are distracting to the real problems that we need to solve together. [applause] lauren we have a bunch of questions here. Maybe we can do a rapidfire round. Thank you for submitting these. The first one, at sitdown restaurants where does square fit in . Jack great question. We routed around this because when we first went to dotaurants, we would say, you want to make more sales by accepting credit cards . We learned how to ask the right questions. Do you want to do reservations as well . We said, no. That seems complicated. We decided not to build a pointofsale for restaurants. What we decided to do was look at ways to continue to drive more sales to restaurants. The superpower we found was delivery. The interesting thing about restaurants as they are constrained by physical size and the number of tables and how quickly they can turn them over. The kitchen can produce more than the number of tables it can have. A lot of restaurants go to delivery but they have to manage delivery staff. That can be messy. They can be a ton of work. Caviard a Company Called that had its own delivery and had a deep relationship with restaurants. We could send a customer through an app, i want to order Fried Chicken and a soda and i wanted send a to me we could courier to pick up the food and send it to the customer. All the restaurant had to do is focus on the kitchen. It seemed amazing. We have done really well with that business because of that focus. ,ow we are extending that to maybe not just delivery. We have a bunch of competition in the delivery space of food in particular. Shift and were to instead of focusing on delivery of food, focus on food . Just ordering food . That enabled us to think about pick up as well. We want to be a place, when you are hungry, you go to caviar and you get to choose what you want to eat. If you want to pick it up, do you want to sit down, or to you wanted to come to you . That feels like a much broader alignsand something that with that principle of driving we couldntustomer reach because we couldnt do table matching. Lauren still no pointofsale within restaurants but delivery. What is the first thing you do when evaluating a new idea . Jack build it. [laughter] we have this principle at square called show dont tell. What we meant to do with that and what we meant to tell the company and ourselves was, you cannot just go to someone with an idea. To show how able something works and i want people to feel it and i want them to finish our sentences. I want them to engage our imagination. Lets do the work to make that thing work. T to the company or to our customers and learn from that. In that evaluation from customers or colleagues, we will and ittique and learn will be something we should continue to invest in or we shouldnt at all. That is working for me. With twitter we did not go to investors until we had hundreds of thousands of people using it. With square we did not go anywhere outside of my cofounder jim until we had something network something that worked. We getting go to visa until we had something that worked. That was the best way for us to evaluate. Otherwise there are so many excuses or things we should do or shouldnt do. The idea gets convoluted and too big and becomes something that is not solving a problem. Lauren i imagine there would have to be an evaluation process. You cant just build every idea. You wouldnt have time in your day to do that. Jack we have a lot of people that can do that. Lauren you delegate. Or someone who wants to be in your shoes and 10 years what do they have to do . By bitcoin. The most important thing for me was to be clear about what i wanted to build in the world and what i wanted to be and more importantly, what i did not want to be. Having selfawareness, so you understand what your strengths are and where your gaps are and that is not a onetime event. It is always ongoing. Having a clear sense of what what your o purpose is. Or what you wanted to be. A lot of hard work and a lot of putting yourself out in uncomfortable situations. Not was a kid, i could i had a speech defect. I could not pronounce any word. I had to go to a speech therapist or years before i felt comfortable i had to go to a speech therapist for years before i felt comfortable speaking to people. , i amme an introvert focused on my gut feeling and those are positives but i was not able to do anything like this. 12, i said, i have to get over this i have to talk to people. I joined the speech club and the debate team and i did something that freaked me out. Which was this improv speech which they give you five minutes , you would have no hope of understanding as a 12yearold. You had to write a five minute speech on that topic and sound like you knew what you are talking about. [laughter] it was such an amazing exercise. It made me uncomfortable. It focused me on what i needed to improve. Of there sense is a book called growth mindset. Simplealks about, a very three point process that you can go through with everything which is, observe, learn, improve. Become a really good listener and observer of how people act and what you do. Just watch. Learn which is understanding and putting patterns together and recognizing how things connect. And then how do you use that to improve. And ideally improve yourself. The responsibility i had to my company and to my family and friends, is selfimprovement. To better myself every single day in some way. , i am on that mindset of going to work really hard and feel uncomfortable, align with my purpose, understanding what my gaps are, to get better every single day. Me in the past 10 years. Lauren lots of people ask this question. What competition if any, do you apple iosresee with and 11 and pay integration . Which is an excellent question. 11 is in beta right now and it is supposed to come out in the fall. Payment directly in the eye ssage. E app in ime how are you planning for the launches of this competitor . Jack there are ways in which we couldnt in which we can collaborate and compete. We are here because of the iphone. It has enabled so much in our company. The fact that there is a super commuter a supercomputer in everyones pocket so that we could hook a reader in his amazing. So much so that we could hook a reader in, is amazing. So much gratitude for what they have done as us for a business and personally. We will have to see what people do with it. I have seen the keynote of it. Lauren i have seen it. Jack you have . We are a cross platform. We have an open network and that is important to us. There is value it being in the intersection of platforms and things rather than being on the platform. Found, we have always wondered about messaging and money movement. That is how we started. With email. Pp. Moved to a a people like single focus or single purpose applications. That has been a strength of ours. We will see how that plays out as it becomes omnipresent. More and more we are seeing square cash, as a spending device. You can spend money with your friend, parent, peertopeer. We are seeing more and more of activity go into the cart. And the stored value. We think there is a whole lot more we can do there that excites us. Yeah, you look at our whole business and the ecosystem of all the services we are providing and all the potential intersections. Companiesedit card collect transaction data from cardholders and sell that data. The square cell user data ll user data . E no. We want to provide insights to the people who own our company. That comes first. The value is taking the data , bubble litnd then up into insights that they can make decisions around. This is how cappuccinos are trending over time. This is how many new customers you have over consisting customers. To makeame time we want sure their customers have control over what data they are sharing with square. That is where it goes to. We dont enable a buyer or we dontshare enable a seller to see the imo address or phone number of a buyer. Given a button on the receipt that says this seller can add me to the newsletter. For this seller can offer me rewards. We have opted more for a simple, straightforward control for the andrcustomer, and insights more data. Lauren in the case of the square physical card which is a visa card, and that cases these a is getting information based on the purchases made with that card . Jack they are getting that information. We dont control with what data they share or choose not to share. Lauren it doesnt involve an issuer . Jack we give it back to the seller in terms of insights and back to the buyer in terms of control. Lauren several European Companies will phase out checks in several years. Coins are going extinct. Why are why is the u. S. Lagging . Can we catch up . Jack we have always been laggards in adapting technology. This was the same when twitter started. We started the service in 2006. 2005 was the first year that sms became a thing in this country. That is surprising to people. Everyone outside of this country because they had been using for 10 years. For 10 years people were using sms to communicate with each other reliably and more so than phone calls. We did not have it in this country because you could not send a text from cingular to verizon. We didnt have across carrier ability to send Text Messages because there were two different technologies. Pmf, which sms was based on. Because of those different stacks, the two could not communicate and they made a bridge and text messaging blew up here. I imagine we are seeing similar things with parties in the network who are holding on very tightly to what they own and have. Or necessarily being open forwardlooking in terms of utilizing a Single Technology or Common Technology standard. To help grow their business. Oral to look at where they can add value elsewhere in their business or to look at where they can add value elsewhere in their business. We have traditionally been slow to adopt newer things that the rest of the world gets first. Lauren there are also instances in emerging markets where people are using mobile because they have to. Jack that is fascinating to learn from. With countries and communities over the world, skipping things we have had to go through. Not just skipping things to arrive at the same place but arriving five years ahead of us. It is something to learn from. Lauren how do you value your time between twitter and square . About on, you spoke a lot solving problems. As a young entrepreneur how should i raise enough capital and get enough talent to grow before monetizing . Jack this can be a different answer for what youre doing. Having an awareness for what you absolutely need and adding think, for the unknown i is a generally good form. We live in a world right now where we could do a whole lot more with a whole lot less. We are looking in both companies in terms of how do we, become more efficient. One of the things i learned from my mom she owned a copy store when i was a kid. It was a coffee store in missouri and she employed me and my two brothers. I hated coffee. I hated tea. She made me the blue stuff. Louis neweople in st. What a cappuccino tasted like. I would just make it and they loved it. [laughter] question,ways ask the why dont we be like starbucks . Why dont we open another location . Why dont we go global and sell in supermarkets . Why dont we have this ambition . She said, thats not what i want. I want to provide a place for my neighborhood to get together and buying beans and getting coffee might be the reason but the result is that the neighborhood gets to come together and see each other and talk. St. Louis is extremely segregated, northsouth. My parents always lived right in the middle. It was right on the center point. People from the north and south came together and talked. It worked. It took me a long time to learn this but one of the powers of technology is not necessarily to get big really fast. It is to be able to make the choice to stay small. My mom wanted to stay small. She didnt want to go broad, she wanted to go deep. I think that is so cool. To do as much as possible with as few resources as possible. That is what everyone around the world is trying to figure out how to do. That is stunning. Weve seen examples in companies, square cash is an interesting example. It is our smallest team in the company. It is also the most distributed. We have no center of gravity for engineering. We have engineers in San Francisco, kansas city, waterloo, sydney, melbourne,. Weden, austin texas probably just hired people in places i am not aware of yet. I think that is so cool. They figured out how to distribute themselves completely and to be one of the fastest moving teams in the company. They are small and super distributed. Of our the future workplaces and our companies. We have these big offices in San Francisco the mega offices and campuses are history. Those things are going away. I think it is so liberating as well. That i can work from anywhere and impact the world from anywhere. That is annexed dictation of the generation coming into the workforce as well i think it is an expectation of the generation coming into the workforce. Lauren how do you think government regulators will respond here and internationally . Jack as they half for the path as they have for the past 30 years. I think there will be a lot of skepticism. Patrick of stripes said this well. Job at our company is to help educate regulators. Take on that mindset. We are not against them, we will help educate them. It opens the door for a healthy and progressive and forwardlooking conversation. Job is to be on the defensive and to protect. To protect interests and ideally the interests are of individuals. It does not always manifest in that way and those things we need to question and educate around. We love software and hardware. But we had this rule, in this regulatory body, in order for us to get out of the United States and serve in markets that required a dip of a chip and a pin number, we had regulators tell us that the only secure way to do that and the only way it will allow you to do that is a hardwarebased pin pad. That did not seem logical to us. With hardware, if there is an issue, it is really slow to update. Or we have to recall it. It is also expensive to put a physical keypad on a piece of hardware. If we had to put it physical keypad on our hardware it would raise costs meaning that less people could afford it and we would see less customers. Empowering less people in the economy. We were stubborn. We tried our best to educate as much as possible. , it wasor over 10 years not 10 years at the time but, people had been entering in a pin to their device to unlock it. They seemed comfortable. It seemed secure. Then, we said, if there is a security issue, we can updated ittantly we can update instantly. Take gy is also about staying 10 steps ahead. We tried to educate them. This allows us to evolve faster. It took us three years to change that regulation and then we did. We launched in australia and that enabled us to launch in the u. K. It is a push. It is not going to happen overnight. I do like that concept of it being a task of education rather than a fight. Asren do you see stripe competitive . Jack there are things we compete on. There are a lot of things we dont. Customer serving a that is typically a startup or online and is building very quickly. We focused on the offline. We focused on physical sellers. Online definitely gone but we are not going after it in , we need to be the ecommerce platform for the world and every developer. We are looking at what our customers need and what they are telling us is, i want to sell offline and online. Omnion the channel this channel is what we are focusing on. Then we have physical retail and physical presence. That is where we fit perfectly. We will always compete with every company in some regard. In others, we are not. The core of what we are doing, we are not. Lauren last question. Considering the contested market for peertopeer payments, where do you see square in the future . We touched on this before. But there is a followup. Up traditionaln partnerships. They left a phone number for you. [laughter] i wont read it here. Where does square cash fit into squares future . Jack we are open to partnerships. Lauren here is the number. [laughter] jack i will take it, thank you. Our main job is moving money around. We move money and the physical space with our card reader and in the Digital Space with square cash. We dont talk about it a lot but square cash also has square cash for business. We have a lot of sellers on square cash you are using us like, golf instructors or massage therapist or dog walkers or people selling a couch, to request money. They dont need a card reader. But we do charge them as a seller because they sign up as a business. Lot of comfort because we have asked the question to disrupt ourselves what if hardware goes away . We have a way. We want to make sure we have a multitude of potential answers to the challenges and struggles that our customers are facing. Some will be physical, which is how we started. More and more and probably all of them will eventually moved to software and digital. We have a really good answer their. That is how i look at it. Lauren one more question, about the future. Lets say five years from now all of the companies we have talked about tonight in addition stripe, amazon, everyone is offering a version of the same thing. They are at pointofsale, where doesveries, square standout at that point . Have four differentiators. We focus on speed and being the fastest. Access to funds is critical for people. The second is our cohesion. Were not just offering one part of the equation. You have all the tools that serve the critical needs. The third is we are elegant. Sellers, putting a register on my countertop makes me feel proud. It validates my business. Im in business now and there is an emotional component to what we do. Are softh is, we serve. You dont need our help to get started. Tellcomes easy for me to the company, make it faster, more selfserve. Make it more cohesive. Directives become easy for our folks in the company to go after. It continues to set us apart. I also think our sense of purpose is what is going to win for us. We came into an industry that was not there. That encouraged people in negative behaviors. That didnt allow everyone to participate for the wrong reasons. We built it into our name which is square. If you look at the definition, you will see a phrase, fair in square. You will see square up. Understandable, commo n object that is kind of boring. But relatable. And a building block. I dont know. We have to lean into ourselves and focus on what our personality and what sets us apart. How we do things and who we are and what we believe. That is what we are doing. Lauren good thing you didnt stick with squirrel . Jack we were originally called squirrel. Lauren jack, thank you so much. Jack thank you. [applause] and we are lie this afternoon. Remarks we are live this afternoon, hearing Rex Tillerson briefingeporters reporters about the way forward in afghanistan. Theit announcement Associated Press just now reporting, the top u. S. Commander for the middle east says that the first new forces will arrive in afghanistan in the next few days or weeks. This could be a topic for the secretary of state to discuss. The announcement that maybe divers searching a flooded compartment of the uss john mccain have found remains of some of those sailors missing. The fleet commander has announced that and promised a full investigation. Those things could come up today at the reefing. At the reefing at the brie fing. It is expected to start in a few moments. [no audio] it appears it will be a moment or so before we hear from Rex Tillerson. We will have live coverage once it gets underway. Remarks from this mornings washington journal on eight groups hate groups. Joining us from berkeley, california, good morning. Thanks for having me on. Tell us what propublic if is . We have 75 employees in the newsroom, most of them are reporters and we have won the Pulitzer Prize four times. Who backs your publication . A lot of folks. , we are tryingrs to develop businesses and bring in some money but basically, we give our stories away for free. To fill the breach in the news media that has developed over the last 15 years where there are are fewer investigative reporters out there. If you are a news outlet and you want to run a propublic story you are able to do that for free. Host that idea of filling a breach. One of the things your organization has launched is, documenting hate. Tell us what it is and what led to the creation of this project . Guest there was an interest in the newsroom from two camps. The data folks were interested because they realized there was a paucity of accurate data about hate crimes in the u. S. The federal statistics are a joke and the federal government will tell you that. They are compiled by the fbi. 20 of Law Enforcement agencies dont participate in the hate crimes program. A lot of the ones that do not only participate dont submit good data. The folks in the data shop were fascinated by that. For me, i was fascinated by the stories we were seeing around the election and in the buildup to the elections. What seemed to be a new way of racist, violence, and bigotry that had political overtones. I was interested in the narratives. We got together and we said, we will create a platform where anyone who believes they have been the victim of a biased incident or hate crime can submit their story to us. We will build a coalition of newsrooms. We will go out and investigate. That is what we have done. We have collected more than 3000 incidents so far. Host when it comes to defining how you put stories out there, because of hate crimes, how do you define a hate crime . Something that would be worth a story for the website . Guest for hate crimes we use the federal definition. A crime motivated by bias against someone because of their identity whether religious, ethnic, sexual orientation, etc. We are also looking at lowerlevel incidents of harassment and bigotry. The things that dont get tracked in data at all. In crime data. Because they are not necessarily crimes of they are disheartening and disruptive to people. We have looked at hoaxes. About that a story when people claim they have been the victim of a hate crime but werent. Also looking at a taxon members andcks on members immigrants from india. And in particular, over the last year. Our guest is reporting on hate crimes in america. If you want to ask them questions. Tell us, you had talked about federal recordkeeping on these things. If someone were to look at that in any close way what would that tell you about hate crimes in america versus what you are reporting . Guest the broad contours of the federal data are probably broadly accurate. Hate crimeshat most are directed against africanamericans. Crimes directed against jews. What is missing from that data beyond national reach, because that doe departments not participate, are the narratives behind the stories. The federal data is just numbers. There are no narratives attached. We have these accounts. We verify the accounts and if they look suspicious we throw them out of our database. But when we verify these accounts we find three major trends. One is what seems to be, a surge in antisemitism. Clearly a is, what is rash of antiimmigrant sentiments. This is people saying, get out of my country, you dont belong here, this is in your country, that sort of thing. The third thing, people behaving in a racist manner and they are basically attributing their racism or connecting it to President Trump in some way. Saying get out of my country, President Trump doesnt want to hear. Or, i will spray paint a swastika and i will spray paint vote for trump next to it. Something like that. Host assuming these incidents have happened for a long time, was it is typically the election and those involved that sparked the reporting on this project . Guest it was the election. Organizedence of racist groups in the runup to the election. That wehese incidents already saw were coming out that were connected to politesse politics. That had a link to the president ial election. You comest call for from mike in maryland, republican mine. You are on with the guest. Go ahead. Caller who is your largest private funder . What is his name . Guest i have no idea. Host do you have a followup . Theer the instance with itka and the trump is was with an africanamerican who spraypainted his own church. Guest you are actually wrong about that, we have verified it. Host this is joe. Caller thank you for the great work you are doing. Charlottesville, i have been politically inactive in terms of being an activist or marching since the 1960s. After seeing what happened in charlottesville, because of the president s waffling, it makes me feel like i have to get involved. This is a president who is suddenly telling White Supremacists and not cease that they are ok that some of them are bad and some on the other side are ok and some are bad. How do you feel . Guest i can tell you this. I think there is a problem in that a lot of people in the media and public i thought i would ta