Square closes $200M Series D round, transactions grow to $8B a year
Square has closed its Series D financing round, led by investors including Citi Ventures, Rizvi Traverse Management and Starbucks Coffee Company. The New York Times reports the round totals about $200 million, valuing the mobile payments startup at $3.25 billion.
Square enables small businesses and other users to accept credit and debit purchases by swiping cards through its signature card reader, a small dongle that plugs into their smartphone's audio jack. The dongle is for sale at roughly 20,000 U.S. retail locations including Apple (NASDAQ:AAPL), Best Buy, OfficeMax, Radio Shack, Target and Walmart stores. Square also powers the Pay with Square and Square Register applications. The firm said it now processes more than $8 billion in payments on an annualized basis, up from $1 billion just a year ago.
As of June 2012, more than 2 million businesses and individuals across the U.S. are using the Square service, up from 1 million just six months earlier. Square plans to expand to the international market later this year, and beginning this fall, Starbucks' 7,000 company-owned U.S. stores will begin processing all credit and debit card transactions using Square's mobile commerce technologies, a move to slash operational costs.
Square nevertheless faces competition from a host of rivals including PayPal Here, which enables small businesses and other users to process transactions by swiping cards through its own, triangle-shaped dongle. PayPal Here went live this past March, and more than 200,000 merchants signed up for the service within its first month of availability.
Square introduces flat-rate monthly pricing for small business transactions
Starbucks adopts Square for in-store payments, invests $25 million
Square launches digital loyalty cards for iOS, Android
Square doubles userbase to 2 million, transactions grow to $6 billion per year
Square doubles its retail reach with Walgreens, Staples deals
Square processing $5B annually, up 25% since PayPal Here launch