If you have been following my blog for a few months, you will remember that I wrote a short posting about using Square, a startup that makes a tiny credit card swiping device for smartphones and the iPad, for credit card processing in your business. Well one of the big boys in the credit space, Visa, has made a strategic investment in the makers of the little white miracle.

The startup raised $27.5 million in funding back in January, so it’s not likely hurting for cash. The real value in this deal is not the undisclosed amount of funding from Visa, it’s the stamp of approval that comes with it.

Square offers small businesses a “free” alternative to expensive credit card terminals and asks for 2.75% of each purchase in exchange. Square reports that about $66 million worth of transactions have been made using their device since it launched publicly in October, and that number is likely to increase as Apple introduces the devices in its stores.

At first, convincing small businesses that their transactions were safe with a startup was a big speed bump. As thousands of them signed on, that challenge wasn’t made any easier by an open letter from competitor VeriFone that accused Square of having a security flaw. Visa’s investment shows confidence in both the startup and its security.

Meanwhile, Visa spokesperson Ryan Donovan told The New York Times that the credit card company was interested in Square for its ability to increase the number of small businesses that accept payment cards.

So again, I would encourage you to take a look at Square for your business. It makes receiving payments on the fly, so much easier. Especially if you sell your products or services outside of your main office like at a seminar or trade show.

As always, if I can be of service to you or your company in developing or managing your digital media strategy, do not hesitate to contact me. Also, if you have any comments or questions, please feel free to post them in the comments section below.