TALLAHASSEE, Fla. Regulators in Florida have fined payments startup Square $507,000 for operating in the state without a money transmitter license.
The Florida Office of Financial Regulation said Square has been operating as a money transmitter in the state since February 2010 but did not apply for a license until Nov. 13, 2012. “Specifically the Office finds that [Square’s] existing payment processing services, including Square Register and stored value/prepaid access card services, required a license under Florida law,” the regulator said.
A number of analysts, including some who were at the Harland Connections conference this week in Nashville, have cautioned that credit unions must develop payments solutions that are as easy to use as Square or risk being disintermediated out of the process. Those analysts noted that Square is not just targeting micro-payments but is being embraced by small and mid-sized businesses, as well.
Since launching in 2010, Square has moved beyond offering mobile payment acceptance using a dongle that plugs into smart phones and tablets and has started moving cash through its virtual wallet.
