Jack Dorsey’s payment startup Square, just got a nice vote of confidence from Visa.
In a blog post, Visa heaps praise on innovative payments startups and mention Square by name, saying it loves working with them.
This is nice news for the startup, which makes a dongle you can plug on a smartphone or a tablet to take payments. Some people were wondering whether the credit card companies would compete with them head-on. And of course, Visa or another credit card company could still do that — a blog post doesn’t mean much.
It will be fascinating to see over the long term how the relationship pans out between the big credit card companies and payments startups. On the one hand, mobile digital payments can be a huge opportunity for the credit card companies. On the other hand, the goal of any mobile startup is or should be to disrupt the credit card monopolies, which charges high rates to merchants and consumers alike.