Yesterday's announcement that Visa made a strategic investment in Square took many in the payment industry by surprise...especially Verifone, as this news squarely provides Verifone with a Black Eye and not the Pea kind.
In prepared statements, Square’s Jack Dorsey, said: “We’re thrilled to partner with Visa. This relationship will accelerate our vision of empowering businesses and aspiring entrepreneurs to succeed. The best way to grow your business is to accept credit cards. Together, we can ensure that all businesses of any size can pursue the American Dream.”
|Verifone's Insecurity "Around" Square|
Gained Momentum with Visa announcement
So Why would Goliath invest in David asks Forbes? Good question.
Here's my opinion:
Square has been targeted by Verifone as "less than secure." (see Verifone Ad on right) Therefore, by getting the backing of Visa, Square not only provides Square with "instant credibility" but, at the same time, strikes back at Verifone. Let's say that Verifone's Insecurity "AROUND SQUARE" just gained momentum...albeit in reverse.
Shout out to Verifone: If it makes you feel any better, I've got a feeling, that Visa isn't as interested in Square as they are in Twitter's 200 million base. Here's why: