Braintree Raises $35 Million to Dominate Online Payments

Braintree, one of the most popular online payment gateways for the web and mobile, has raised $35 million in another round of funding led by New Enterprise Associates, according to a report by Techcrunch. This deal brings its total funding up to almost $70 million.

Braintree competes primarily with the likes of PayPal, providing a merchant account and payment gateway for web and mobile support. It has a massive customer base which includes biggies like Rovio, Uber, OpenTable, Airbnb, Heroku, Engine Yard, Shopify etc. It has seen its transaction volumes increase to $5 billion in total payments in the last year and has around 3,000 merchants signed up for its payment offerings. It supports more than 30 countries and 130 different currencies.

While PayPal is ideal for consumers, Braintree is targeted more towards small businesses, startups and enterprises. After acquiring Venmo, they are now also going after the consumer market, specifically after small developers.

Mobile Payments are expected to be huge in the next couple of years, and Braintree will compete with PayPal and Square in that space. While PayPal is backed by eBay, Square recently raised $200 million. It’s going to be an interesting war.

via Techcrunch

Square Raises $200 Million at $3.25 Billion Valuation

Square was rumored to be working on its fourth round of funding since months now, at an estimated valuation of $4 billion. However, the disastrous Facebook IPO changed the fundraising market, and we didn’t hear much about that until now. Apparently, Square has announced its fourth round of funding which values it at $3.25 billion, impressive by any standard.

Square has raised $200 million in its Series D round, from investors like Citi Ventures, Rizvi Traverse Management, and Starbucks Coffee Company. It has grown significantly in the past year, and now has a run rate of nearly $8 billion in payments annually. It has grown to nearly 400 employees, and will continue to add more to fuel its expansion.

This latest round brings its total funds raised to around $340 million. It competes primarily with Verifone and PayPal.

They issued a press release announcing the same:

“Square (, the company revolutionizing commerce, announced today that it has closed its Series D financing round. Investors participating in the round include Citi Ventures, Rizvi Traverse Management, and Starbucks Coffee Company.

One year ago, Square had approximately 150 employees and processed over $1 billion in payments on an annualized basis. Today, Square has over 400 employees and is processing over $8 billion in payments on an annualized basis.

Square’s growing revenue and workforce precedes the company’s plans for international expansion later this year.”

via Techcrunch

PayPal Vs. Square Gets Serious with Paypal-Discover Partnership

Recently, PayPal has making bold new moves to take its business to the next level. This drive of ambition has come after eight years of PayPal’s online business, and it has comes only after PayPal saw how Square skyrocketed up in this sector of offline and mobile payments, a field that PayPal never took up.

PaypalHowever, the last one year has been an eye-opener for PayPal and it has started taking Square and its style of business seriously. PayPal started by announcing a deal with McDonald’s and acquiring Square, on the other hand, grabbed a major deal with Starbucks. Grab your popcorn, because this is going to turn into an intense race for supremacy in the field of offline and mobile payments. PayPal has recently announced another deal with Discover, which does not restrict it to a few merchant establishments anymore.

This deal with discover will put PayPal miles ahead of Square in this race, with offline PayPal payments being accepted at more than seven million merchant establishments. Trying to keep pace with this improvement, PayPal’s VP of Retail Services says,

The whole industry has been looking for a landmark that says that all of this is really happening. This is an important deal for us, because it gets us to over seven million locations seamlessly.

PayPal boasts of over 50 million users, and Discover has a network spread across the entire US. This marriage will make for the largest mobile payment network spread across the US. The deal with Discover will go operational in April next year, and it is time for Square to make its big move.

PayPal Enters the Race for Offline Payments at Stores

PayPal is the most popular way to transfer funds online. Surely, there are numerous reasons to hate PayPal, though that does not make it any less of a contender in the digital payment space. However, online payment is not the only place where a company like PayPal can do business. Perhaps on realizing this after eight years of business, PayPal is trying to compete with mobile-payment startup Square, which has grown to become extremely popular in a year because of its better service. Square lets users pay for purchases with their mobile phones.

PayPal revealed its ambitious plans for its payment business around September last year, and it also announced that it would test offline payment plan with 20 merchants.

Just two days ago, PayPal acquired, which was another player in the mobile payment segment. However, it made a giant leap in its tests with offline payments, when it tied up with McDonald’s outlets in France. Square, on the other hand, is tied up with Starbucks for carrying out its tests. With this move, Square and PayPal are competing head on for supremacy in the mobile payment field. PayPal has also signed deals with Home Depot and Office Depot for mobile payments.

PayPal’s test lets users pay with a mobile app, and then collect their food from a queue dedicated to this test. This self-service for payment can shave off waiting times and bring profit for McDonald’s or any merchant out there, and bring profits for a supporting platform like Square or PayPal.

Is Square Planning On Making A Windows Phone App?

Square, the company that plans to bring the way we pay for goods and services to the 21st century had a pretty big announcement yesterday. Starbucks will be rolling out Square throughout their stores over the fall, allowing customers to use their smartphones to pay for coffee and other products at many Starbucks stores. On top of this, Starbucks also made a $25 million investment in Square.

In the midst of the big news, Square founder Jack Dorsey hinted at the possibility of a Square app for Windows Phone while talking to Engadget. He vaguely said this: “We will definitely build for where the users are, and we’re excited about the Windows Phone interface.” As of now, the Square app is only available on iOS and Android.

It goes without saying that the Windows Phone platform really needs more quality apps. While there’s a considerable quantity of apps in the Marketplace, that means nothing to users if they won’t be able to get their favorite apps on the platform. As of now, when it comes to apps at least, iOS and Android are the safe bets for consumers.

PayPal Acquires to Take on Square

PayPal, one of the fastest growing startups in the world, turned into a lumbering giant after eBay acquired it in 2002. Though it still processes billions of dollars in online payments across the globe, it risks being upended by startups like Stripe, Square and others which are offering better technology as well as better service than PayPal. PayPal has been trying to play catchup in the last couple of years, and its latest acquisition – – may help it increase its market share in mobile payments.

It announced that it has acquired earlier today. is a startup which enables developers to capture credit card information using a smartphone’s camera. PayPal was using its service to power PayPal Here, its competitor to Square.

It will presumably use’s technology and team to build better mobile payment solutions, and grab a bigger piece of the rapidly expanding mobile payments pie.

It will also keep the current technology available for use to developers. By joining PayPal, the team gets scale, while the former gets talent and a better shot at retaining its place as the market leader in mobile and online payments.

The terms of the acquisition haven’t been disclosed, but the amount is likely to be small.

via PayPal Blog

Here’s How Square/Google Wallet Will Put Foursquare Out of Business

Foursquare, a darling startup of everyone, might have raised a lot of money and might have an unusually handsome co-founder. But if you followed Techcrunch disrupt NYC, this year, when Michael Arrington questioned Dennis Crowley about the revenue foursquare is generating, he did not wish to answer.



Now at a platform like Techcrunch disrupt, who wouldn’t want to brag? It’s either they are making tons of money or they are making nothing. Nada. In my opinion it’s the later one. Now while the whole checking in funda is cool and was fun while it lasted (I’m already suffering from check-in fatigue), foursquare doesn’t really have a business model except for tying up with businesses for offering returning customers some offers.

But how would Square/Google Wallet take away Foursquare’s business you ask?

Here’s how. Square, a nice nifty startup launched to manage payments is soon gaining a lot of attention mostly because of one of it’s co founder Jack Dorsey. Jack Dorsey was also one of the key member behind Twitter. But that’s not the only reason why Square is getting a lot of attention. It’s because the startup he built is damn useful.
Managing your payments in digitalised format for customers and retailers is something I’ve always dreamt about. Square makes it possible. But that’s not all. Here’s why Square is above Foursquare and will steal the main revenue making possibility from Foursquare. Square can track user spending’s at stores even without them having to check-in. Besides that, Square will also take care that the customer doesn’t just checks-in but also spend money in order to get future loyalty rewards. It’s a win-win situation   for both customers and retailers.

Foursquare, in my opinion would have to start looking at something different to generate revenue or should have exited when chance had arrived.

Google also recently announced their ambitious project – Google Wallet. Google Wallet is an open platform that will allow you to use credit cards, coupons, store loyalty cards, etc without actually swiping each card. Again something similar to Square. Here again Google can do everything what Square can do, that is, collecting data. And considering Google has tons of other products that users can link via their Google profile, Google has an advantage over Square. But nonetheless, it’s going to steal whatever business model Foursquare had in mind if they Google seems serious about expanding   their   Local and Social reach.

Either Foursquare needs to quickly find a new way to generate the revenue or stay stubborn and die the the internet death. It would be sad to see the yet another brilliant startup die a Digg like death where it couldn’t innovate and adapt with the competition.