UPDATE 1-Square revenue beats estimates on higher transactions

(Adds details, share move)

Aug 2 (Reuters) - Square Inc, the payments company co-founded by Twitter Inc Chief Executive Jack Dorsey, reported a better-than-expected 26 percent jump in quarterly revenue, as customers processed more transactions through its technology.

The company, which also raised the low end its full-year revenue forecast, said gross payment volume - the total dollar amount of all card payments processed by sellers - jumped 33 percent to $16.4 billion in the second quarter.

Shares of the San Francisco-based company rose 1.5 percent to $26.82 in after-market trading on Wednesday.

Square facilitates payments between businesses and customers by using a credit card reader that turns any cellphone into a payment terminal.

Square raised the low end of its full-year revenue guidance to $2.14 billion from $2.12 billion, keeping the top end unchanged at $2.16 billion.

The company, which made its foray into the UK in March, said transaction revenue rose 32 percent to $482.07 million, while subscription and services-based revenue almost doubled to $59.15 million in the quarter.

Net loss narrowed to $15.96 million, or 4 cents per share, in the quarter ended June 30, from $27.35 million, or 8 cents per share, a year earlier.

Net revenue rose to $551.51 million from $364.86 million.

Analysts on average had expected a loss of 5 cents per share on revenue of $536.27 million, according to Thomson Reuters I/B/E/S.

Shares of Square have risen 94 percent so far this year. (Reporting by Sruthi Shankar in Bengaluru; Editing by Maju Samuel)