Visa buys nearly 10 pct stake in Dorsey's company, Square

NEW YORK (AP) - Visa is now a major shareholder in Square, the mobile payment services company co-founded and led by Jack Dorsey.

Shares of Square spiked 14 percent before the opening bell Friday.

Visa snapped up a nearly 10 percent interest in Square, according to a regulatory filing. That would make it the San Francisco company's second-biggest shareholder, according to that data research firm FactSet.

Visa has been working on payment services technology of its own including Visa payWave, which allows users to pass a card over a terminal to record a payment.

Square Inc. went public in November. The Square device plugs into smartphones or tablets, so credit cards can be accepted almost anywhere.

Dorsey, a co-founder of Square, is also co-founder and CEO of Twitter Inc.