Mobile payments are becoming big business, and Square is keen to raise additional funding to stay ahead of the competition.
According to Bloomberg, the mobile payment startup is in talks to raise $200 million in a financing round which would value the company at $6 billion. Citing people with knowledge of the matter, the publication says some of the funding will come from the Government of Singapore Investment Corporation.
Square is the creator of credit card readers which slot into smartphones to enable mobile payment. However, the firm faces stiff competition against well-known rivals such as PayPal, as well as new entrants in to the mobile payment market, such as Amazon. The online retail giant earlier this month unveiled, which undercuts Square by offering a free app and $10 card reader which plugs into a mobile device to initiate payments. In comparison, Square offers free software but takes a fee of 2.75 percent for every transaction made.
In a press release, Matt Swann, vice president of Amazon Local Commerce said Amazon Local Register was designed to make "accepting payments so easy and inexpensive that it no longer gets in the way of a business owner doing what they love."
Earlier the month, Square, co-founded by Twitter chairman Jack Dorsey, put to rest recent talk in the face of such competition; rumors which suggested the startup was considering acquisition offers or had decided to go public. In a blog post, the company said:
"Like you, we’re a growing business. You invest in your future, and so do we. We're well-capitalized and putting our money to good use: Investing in people and new products. Reports that we tried to sell the company, or of a delayed IPO? False. We’re here for the long-term."
Square has raised over $342 million since the company was formed in 2009.