The two payment processors will have time to grow user bases before turning their swords on each other, according to Shawn Cruz, Manager of Trader Product and Business Strategy at TD Ameritrade.
"At this point, it is an emerging industry," he explained. "The two big companies are focused on growing volume; it will be a while before the industry matures to the point that they really begin to compete heavily for market share. It's not like the pie is already thick."
He compared the nascent industry to that of social media when experts questioned how a company like Facebook (FB) can draw significant profits.
"Everyone poo-pooed Facebook, asking how they could make money, but now that's obvious," he said. "What we can learn is that monetization of platforms like this will center on user growth."
PayPal's Venmo has been able to capitalize on its growing user base already. CEO Dan Schulman reported that about one-quarter of its user base has engaged in activity available for monetization on the platform.
"It won't be as simple as charging per transaction," Cruz added. He again recalled Facebook, explaining that we might not understand yet how to monetize each platform, but that audience size will find a way.
Cruz's take echoes many bullish analyst outlooks proclaiming both platforms will push on to profitability in the future.
Many keyed in on the nascent nature of Square's initiatives, offering them a chance to cut a slice of the payment processing pie as the dough rises.
According to a Keybanc Capital Markets survey led by Director of FinTech Josh Beck, Square is poised to remain a leader in payments for businesses as the mode of transaction continues to transition to mobile and online.
"70%+ of sellers did not even consider a competitor when selecting Square and 45% started their first payment relationship with Square, indicating a dominant brand among small businesses," Beck explained.
He indicated that Square's underlying product line is the key story for the company's emerging opportunities in the emerging space.
"Most of the initiatives remain early cycle, and thus could leave room for substantial outperformance if Square is able to scale them efficiently."
As each company charts double-digit growth on quarterly earnings this year and double-digit returns for shareholders, there might indeed be time for the payments pie to cool off before the companies start stealing from each other's plates.