Square Inc. struck an agreement to process payments for ticketing service Eventbrite and made a strategic investment in the startup, part of the digital-payments company’s push into online commerce, an area dominated by larger players like PayPal Holdings Inc.
San Francisco-based Square invested $25 million in Eventbrite, which lets event organizers sell tickets and promote and manage events. Eventbrite, whose customers include the Tribeca Film Festival and Maker Faire, said it processes 2 million to 3 million tickets each week and expects to facilitate more than $4 billion in gross ticket sales this year. Square will handle Eventbrite’s online, mobile and in-person payments for countries where Square does business.
Square’s stock has more than doubled in the past year as investors gain confidence in its long-term growth path. The shares were up less than 1 percent to $28.21 at 11:56 a.m. in New York Thursday. When the company was co-founded by Chief Executive Officer Jack Dorsey, who also runs Twitter Inc., it focused on selling smartphone plug-ins that helped individuals, food trucks and farm-stand vendors accept credit cards.
Since then, the company has gained ground with bigger merchants with its all-in-one offering, freeing them from having to stitch together services from different vendors. With Square, Eventbrite’s users can analyze sales data from a single platform, whether they’re selling tickets online or merchandise at an event. Currently, event planners mostly process payments through Eventbrite’s own system.