E-Commerce Player Square Raises $150 Million

October 6, 2024 by
E-Commerce Player Square Raises $150 Million

The New York Times is reporting that Square, the e-commerce startup company known for its square mobile card readers, has raised $150 million in a new round of venture financing. The $150 million comes with a $6 billion valuation for Square. Previously Square had announced a goal of $100 million on the same valuation. This latest round of financing is now closed.

The new investment comes at perhaps Square’s greatest time of need. The payments industry has been racked by multiple data breaches, new players like Apple Pay are entering the market, and established players like PayPal are making moves of their own.

In response to the growing security concerns, Square has said it will soon release a new version of its card reader designed to accept EMV chip cards. These cards come with a microchip that is scanned by the reader to determine if the card is legitimate. Merchants may be attracted Square’s new reader because it will be cheaper, faster, and smaller than competing EMV devices.

Square will also need this money to keep up with innovating competitors. Several big players have made moves recently. Apple has announced its payment system dubbed Apple Pay, eBay has decided to spin off PayPal into a separate entity, and Amazon has even come out with its own card readers. All of these companies will have a much easier time raising capital than Square.

For its part Square has looked to diversify its own revenue streams. It runs programs like Square Capital and Caviar, a food delivery service. Square has even said it will accept payments from Apple Pay. Constant innovation and change will be necessary if Square hopes to keep up with the ever evolving payments industry.

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