Square drops hold on funds, says it has shipped 800K readers
TechCrunch and AllThingsD both featured articles on mobile POS start-up Square today. According to the articles, the company's COO Keith Rabois called them to report Square has now shipped 800,000 readers. Rabois also said the company is now processing more than $2 billion on an annualized basis.
According to Rabois, the 800,000 merchants signed to Square represents 10 percent of all of Visa and MasterCard's total merchant base. (Visa and MasterCard are accepted at approximately 8 million merchants worldwide.)
Rabois said that 70 percent of the merchants who have signed up for the Square service have never accepted credit cards.
The other news prompting Rabois' calls to the tech outlets is that Square is waiving the hold it places on merchant funds over a certain amount. Initially, if a Square merchant processed more than $1,000 in a seven day period, any funds over $1,000 would be held for up to 30 days for security reasons.
According to Rabois, improvements in the company's security measures have made the hold unnecessary.
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