Visa buys big stake in Jack Dorsey’s company Square

Square and Visa

Visa now owns nearly 10% of Square, the mobile payment services company co-founded and led by Twitter CEO Jack Dorsey.

Shares of Square jumped 16.13% before the opening bell Friday.

Visa buys big stake in Square

Visa snapped up a nearly 10% interest in Square, according to a regulatory filing. That means Visa is now one of the San Francisco company’s five biggest shareholders. Shortly after Square went public in the fall, billionaire Leonard Blavatnik disclosed an 11.4% passive stake in the firm.

Visa has been working on payment services technology of its own including Visa payWave, which allows users to pass a card over a terminal to record a payment.

Square Inc. went public in November. The company uses technology that plugs directly into smartphones, tablets, and other mobile devices so businesses can easily accept credit cards from anywhere.

Visa hasn’t explained its intentions for the 10% stake in Square at this time.

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