disrupt and materially and adversely affect our business. Many of the key components used to manufacture our products, such as the custom parts of Square Reader for magnetic stripe cards, including its magnetic stripe-reading element, its plastic cover, and its application-specific integrated circuits, come

e device. It enables sellers to accept payments by swiping a buyer's payment card. These readers are free, mobile, and require no separate battery. Square Reader for EMV chip cards also plugs into the standard headset jack of a mobile device. It enables sellers to accept payments by dipping an EMV chip card o

s. and also at over 35,000 retail stores (including Apple, Best Buy, Staples, Target, Verizon, Walgreens, and Walmart). We plan to continue offering Square Reader for magnetic stripe cards for free. Our Competition The markets in which we operate are competitive and evolving. For payments and POS services, we