Square, the popular mobile payments company, is going to start building a recommendation engine based off of collected payment data. This recommendation engine would have the ability to compete against services like Foursquare and Yelp. Square’s recommendation engine will be able to suggest places for people to visit based on their previous purchase history.
“We can tell you that people who like X might also like Y ? and it’s a true representation of what you’ve bought,” stated Square’s Director of Discovery Ajit Varma in an interview with The Verge. “I think we can do something a lot better.”
Square did not provide any details about when the new recommendations engine will be launched. People that use Square’s Wallet application will be shown ideas and suggestions for other things to buy. For example, you may be shown details about a new sushi restaurant if you frequent Japanese establishments.
When Square enters the local recommendations market, they will have the advantage of a large user base. Square works with 330,000 merchants to service 3 million users. Square also has major partnership with Starbucks.