Visa Investment in Square May Mean Big Things for Industry

Square has received a substantial (though undisclosed) investment from Visa. This is huge news for both Visa and for Square.

If you’re not familiar with Square, it’s a startup from Twitter co-founder Jack Dorsey, which allows anyone with a smartphone to accept credit card payments via a dongle that plugs in and allows consumers to swipe their cards.

The investment from Visa in some ways validates the service, which makes it a great deal easier for anyone to accept a credit card free from any substantial hassle.

Last month, Square announced that it was already processing over a million dollars a day. Prior to that, they had eliminated a transaction fee – a 15 cent fee on credit card payments. Obviously that went over pretty well with customers.

Jack Dorsey recently returned to Twitter after several years away from day-to-day operations at the company. He’s now leading product at the company, while maintaining his role as CEO at Square.

The new investment from Visa, which is said to be in the millions, comes at an interesting time for the company as its leader juggles two major companies. Twitter is used in revolutions, and Square is often accompanied by the term "revolution" in media coverage about the payments industry.

Square COO Keith Rabbois told the Wall Street Journal that he has had the same amount of interaction with Dorsey since his return to Twitter that he had beforehand. That’s a good sign.

Rabbois also said that Square will continue to look for collaborative partnerships that "might make sense," adding that Square’s and Visa’s visions were "aligning".

There is 1 Comment. Add Yours.

machines
August 7, 2011 at 3:44 am

We all know that there’s no such thing as a free lunch in payments (or anywhere). So not surprisingly, this instant merchant account came with its own set of strings (like very modest monthly account limits).



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Visa Investment in Square May Mean Big Things for Industry

Dorsey Juggles Both Companies Well Apparently

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