Square processing $10B in annual payments, up $2B in two months
Square is now processing $10 billion in annual mobile payment transactions, up from $8 billion in mid-September and exploding from $2 billion a year ago.
Square announced the latest milestone via Twitter. TechCrunch reports the $2 billion increase does not include transactions processed at Starbucks: As of last week, the coffeehouse chain's customers may pay for their purchases using the Square Wallet application for Apple's (NASDAQ:AAPL) iOS and Google's (NASDAQ:GOOG) Android. The app generates a QR code scanned by a Starbucks digital reader terminal and links to the user's debit or credit card to process the transaction. TechCrunch instead credits Square's recent growth spurt to aggressive television advertising and corresponding increases in consumer adoption.
Last month, Square also expanded sales of its signature Mobile Card Reader to the Canadian market. The Card Reader enables small businesses and other users to accept credit and debit purchases by swiping cards through a small dongle that plugs into their smartphone or tablet audio jack. Square charges users a flat 2.75 percent fee on all transactions and promises no contracts, monthly fees or hidden costs.
More than 2 billion U.S. businesses and individuals now use Square services. In September the firm closed a Series D financing round, led by investors including Citi Ventures and Rizvi Traverse Management; The New York Times reported the round totals about $200 million, valuing Square at $3.25 billion.
Square 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. eBay-owned PayPal also is on pace to handle $10 billion in mobile payment transactions in 2012, an increase of 150 percent over a year ago.
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