Square Mobile Payments Startup Receives Large Investment from Visa
April 28, 2011 10:57 AM
comment(s) - last by
Visa invests an amount in the single-digit millions
Square Inc. has recently announced that it is partnering with Visa for its mobile payments startup, and Visa will be investing a sum in the "single-digit millions."
The use of mobile payment systems through NFC technology is becoming more and more popular as tech giants adopt it. For instance,
Google plans to test its mobile payment system
within the next couple of months in New York and San Francisco. In addition,
Visa recently partnered with Samsung in an NFC venture
for the London 2012 Olympic Games.
Square Inc. first introduced the Square electronic payments service in early 2010. It allows consumers in the United States to use their iPhone, iPad, iPod touch or Android-based phone to accept credit card charges. The system utilizes an attachment called a "dongle," which is used in unison with a mobile device in order to accept credit card payments.
Even before Visa came along with a healthy investment, Square seemed to be doing well for itself. In a recent statement, Square mentioned that it was processing over $1 million in mobile payments daily. It also closed a $27.5 million round of funding "at a $240 million valuation."
Square became a very attractive choice for consumers after it dropped the 15-cent processing fee for payments this past February. This means that merchants only pay one 2.75 percent fee instead of a percentage fee and an additional fixed cost. This price cut made Square the right choice for small merchants who couldn't pay the expense of fees, and also made Square a worthy competitor of other payment services like Verifone's Payware mobile.
Visa on its side
, Square will likely see a boost from the "single-digit millions" that Visa is investing in the technology.
"We're thrilled to partner with Visa," said Jack Dorsey, CEO of Square. "This relationship will accelerate our vision of empowering businesses and aspiring entrepreneurs to succeed. The best way to grow your business is to accept credit cards. Together, we can ensure that all businesses of any size can pursue the American dream."
Visa is also looking forward to the new partnership, as it represents a new opportunity to compete in the mobile payments market.
"As a leading brand in payments,
Visa continuously evaluates new technologies
and invests in payment innovations that can enable more businesses to accept Visa," said John Partridge, President of Visa.
This article is over a month old, voting and posting comments is disabled
4/28/2011 6:15:02 PM
Very good move from Visa, this will keep them at the forefront of transactions in the 21st century. Whoever is in charge of strategy at Visa is well worth their salary. I'm surprised more credit card companies haven't tried to get their fingers in a market that will likely come to replace many older bulky systems.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
Visa, Samsung Join Forces in NFC Venture for London 2012 Olympic Games
April 1, 2011, 9:53 AM
Google to Test Mobile Payment Service Within 4 Months
March 15, 2011, 9:59 AM
Visa NFC Payment Trails Underway in Europe
February 1, 2011, 11:13 AM
Cell Phone Unlocking Bill Heads to President Obama's Desk
July 28, 2014, 11:58 AM
T-Mobile CEO John Legere is on the Warpath Again; Introduces $100, 10GB Family Plan
July 28, 2014, 10:12 AM
Report: All 15" MacBook Pros to Receive 16GB RAM Standard Starting Tomorrow
July 28, 2014, 8:12 AM
Sony's Xperia Z3 Gets Detailed in Leaked Photos
July 25, 2014, 2:30 PM
Heavy Users of Verizon’s “Unlimited” LTE Data Could Soon See Targeted Throttling
July 25, 2014, 1:52 PM
Motorola Moto X+1 Makes Appearance in Leaked Photos
July 25, 2014, 12:06 PM
Most Popular Articles
JJ Abrams Unveils X-Wing Starfighter for New "Star Wars" Movie
July 21, 2014, 12:24 PM
Ford Details ’15 F-150’s 325hp, 2.7L EcoBoost V6; Demonstrates 732-lb Weight Loss
July 22, 2014, 6:55 PM
Comcast Memo: Harassing Customers During Retention Calls Actually IS Our Policy
July 22, 2014, 5:19 PM
Kindle Fire Phone Review Roundup -- A Solid "Meh"
July 23, 2014, 2:09 PM
Motorola Moto G Successor Reportedly Uncovered, Moto X Discounted by up to $75
July 21, 2014, 1:11 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information