Square exploring 2014 IPO

Square, the mobile payments firm,  has been in discussions with several banks including Goldman Sachs and Morgan Stanley about an IPO next year, according to reports in The Wall Street Journal.

Square’s interchange margins will approach $1 billion in 2014, which represents the fees it collects from merchants who use their various mobile payment apps to collect the more than $30 billion in transactions it projects it will process next year.

Margins are projected to reach almost $550 million on total payment volume of $20 billion. Jack Dorsey has publicly disclosed that Square does not make a profit. Internal sources tell us he expects to be in the black by 2015.