Startup Square just secured a major advantage competitive mobile payments space — a strategic investment from Visa, which will put one of its executives on the company's advisory board.
This isn't about the cash — earlier this year Square raised $27.7 million in financing, led by Sequoia capital — this is about validation from Visa, a leader in credit card payments.
Considering that all of Square's rivals, including Quicken and PayPal, have been looking to partner with a giant like Visa, this gives Square a huge advantage in getting merchants to adopt its service.
Square is a little device that plugs into iPhones, iPads, and Android phones, to allow anyone to swipe a credit card and accept payments. There's no contract — just a 2.75 percent fee for each transaction. The company's run by Jack Dorsey, one of Twitter's co-founders, who's now back at the company as chairman.
Visa's support could be just what Square needs to cross to the mainstream.