07 February 2016

Square to close $200m funding round

25 July 2012  |  5964 views  |  3 cash

Square is on the verge of closing a $200 million funding round that would value the dongle and app-based mobile card reader startup at $3.25 billion, according to the New York Times.

The round will be led by Suhail Rizvi from private equity firm Rizvi Traverse Management, which has previously invested in Square chief Jack Dorsey's other company, Twitter, says the Times, citing sources.

The new money suggests that Square has doubled its value since raising $100 million in a round valuing it at around $1.6 billion a year ago but the firm had been seeking investment at the $4 billion mark, says the Times.

Since launching in late 2010, Square has seen huge growth and now claims around two million users for its dongle and app system that enables merchants to accept card payments using smartphone. The startup predicts it will process $6 billion in payments this year.

However it faces increasing competition, with established players such as PayPal, Intuit and Verifone all offering similar products and other rivals such as Google and the Isis consortium of telcos bidding to take cards out of the equation through mobile wallets and contactless payments.

Square though is bullish on its prospects, with head of strategic planning and analysis Steve DeWald taking to Quora last week to dismiss PayPal as a challenger and potential partner.

Responding to a question asking if PayPal has approached Square about an acquisition, DeWald was scathing about the eBay unit, saying: "I don't think we would ever consider working with PayPal in any capacity. Our cultures are too different and fundamentally incompatible. Square still has the mentality of a startup...PayPal is a part of the problem. They're just another card processor that doesn't care about their customers."


Comments: (3)

A Finextra member | 25 July, 2012, 16:23

Steve DeWalds comments are very reminiscent of Martha Lane Fox - whos company took years to eventually break even.... If paypal are part of the problem - then its a problem for Square - not PayPal. I think Squares valuation is similar to that of Facebook - rather over hyped,

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Nick Green - ISD Consultants - Northampton | 26 July, 2012, 11:15

Am I missing something here. The US is moving to EMV so face to face fraud in the US will migrate to Square Retailers - why would you buy into that?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 27 July, 2012, 09:03

With its candid - and, IMO, very true - comment about PayPal, SQUARE implies that it cares for its customers. I hope it lives up to this claim by refraining from putting arbitrary freezes on merchant accounts.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

12 July, 2012
16 May, 2012
08 May, 2012
21 March, 2012
16 March, 2012
05 March, 2012
23 January, 2012
10 January, 2012
16 November, 2011
19 August, 2011
29 June, 2011
23 June, 2011
24 May, 2011
28 April, 2011
03 March, 2011
11 January, 2011
02 December, 2009

Related company news


Top topics

Most viewed Most shared
Fintech rising: Resistance is futile, says...
10135 views comments | 47 tweets | 39 linkedin
Digital transformation driving earnings at...
8751 views comments | 42 tweets | 35 linkedin
ECB eyes up European P2P payments
7627 views comments | 28 tweets | 38 linkedin
Visa opens up to developers
6933 views comments | 23 tweets | 40 linkedin
It may take ten years, but blockchain tech...
6024 views comments | 20 tweets | 19 linkedin

Featured job

£100,000 basic, £180,000 OTE + Benefits

Find your next job