Square perks up, now handles $8B in payments a year

The mobile payments company also says it has raised $200 million more in a new round of funding, led by Citi Ventures and Starbucks.

Square

Square is growing by leaps, bounds, and venti lattes.

The payment-processing company, which allows merchants to swipe cards with a device connected to mobile devices, today announced that it's now handling $8 billion in transactions every year. Just a year ago, that figure stood at over $1 billion, and earlier this year, Square CEO Jack Dorsey said the company was processing $4 billion in transactions per year .

That growth has meant far more revenue for Square. Although the company doesn't divulge its financials, it takes a fee of 2.75 percent for each card swipe through its service. As more transactions are processed, the company generates more cash. It's simple math.

Aside from touting its growth, Square also announced today that it has closed its Series D round of financing. The $200 million round was led by Citi Ventures, Starbucks Coffee, and Rizvi Traverse Management, according to Square.

Rumors have been swirling for months that Square was near closing a $200 million financing round. It was believed back in July that the sum was raised by a valuation of $3.25 billion -- not bad for a company that's just three years old. As is typical of a privately held company, Square has not publicly divulged its value.

With its new cash, Square says that it'll work on expanding its service internationally next year.

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About the author

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

 

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