Visa reveals size of Square stake - Mobile World Live

Visa reveals size of Square stake

12 FEB 2016

Square, the Jack Dorsey-led firm that promised to shake up the payments market by enabling small traders to accept payments on smartphones and tablets, has financial services giant Visa as a ten per cent shareholder.

The credit card giant disclosed its stake in a regulatory filing.  Visa was known to be a shareholder in Square (it invested in 2011) without revealing the size of its stake.

Square held a successful IPO at the end of 2015, albeit conservatively priced.

The firm’s recognisable dongle enables smaller businesses to transform a smartphone or tablet into point-of-sale terminal. Once a business signs up for the dongle then Square processes its payments, its core business.

The firm succeeded in attracting many small traders to accept credit and debit cards where previously they only accepted cash by competitively pricing its rates for processing card payments.

Square’s prospectus for its IPO revealed that founder Dorsey and VC firms Khosla Ventures were its largest shareholders. Interestingly, Visa’s name did not feature in the list of leading shareholders.

Following the IPO it was revealed billionaire investor Leonard Blavatnik had built up a so called passive stake of 11.4 per cent in the mobile payments firm.

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Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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