Square processing $2B in payments a year, merchant signups top 800K

Mobile payment solutions startup Square is now processing $2 billion in transactions each year. Square COO Keith Rabois tells TechCrunch that the firm has now signed up more than 800,000 merchant partners, up from 500,000 in May 2011--by comparison, credit card giants Visa and MasterCard have authorized a combined 8.2 million merchants.

Square enables small businesses and other users to accept credit and debit purchases via smartphone or tablet, swiping cards through a small dongle that plugs into the device's audio jack. Square charges a fee of 2.75 percent on each transaction, and promises users no contracts, monthly fees or hidden costs. In the past, Square limited new merchant users to $1,000 in transactions per week--processing on weekly totals exceeding $1,000 could face delays as long as one month. The company is now abolishing the cap, promising to deposit funds into new accounts by the next day.

"We're not going to sleep until we improve the entire experience of buying and selling," Rabois said. "Every month we'll have improvements to the product."

The move follows two months after Square issued the latest version of its application for Apple's (NASDAQ:AAPL) iOS, touting improved transaction speeds and a simplified checkout process. Square 2.1 for iOS eliminates multiple transaction screens, abbreviating the checkout process to as little as four seconds--in addition, Square no longer requires signatures for transactions totaling less than $25. The revamped app also boasts an improved tipping interface and added support for items priced at $0.00, which is helpful for merchants looking to keep track of add-ons.

For more:
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