Visa, the pioneer in the credit card industry has decided to invest in Square, an emerging mobile credit card processing company.
Square was founded in 2009 by Jack Dorsey, the founder of Twitter, and according to a recent estimation based on the $27.5 million funding it received, the company’s market evaluation stands at approximately $240 million.
The company’s area of expertise is in making a magnetic reader that connects to the headphone jack of Smartphones and for each sale through the device, Square charges approximately 2.75 percent of the transaction.
Apple just recently kicked off the online sale of the device for an amount of $9.95 each. But on signing up for an account, the buyer gets $10 worth credit from Square, plus the apps are free.
Keith Rabois, the COO of Square said in a recent exclusive briefing to Forbes that it is not the money factor but the strategic interests that served as a motivation behind the two companies joining hands.
He said, “They've been converting paper transactions to electronic transactions successfully for over 40 years, both in retail environments and on the internet,". "They have unparalleled expertise" Rabois added.