Square suffers mobile payments setback

square

In hot water

An Illinois state regulatory body has notified Square of a cease-and-desist order. The order stems from allegations that the mobile payments company is dealing in the state without proper licensing. 

Square have confirmed the issue, commenting: “We’ve been in close contact with the Illinois Division of Financial Institutions for several months and are addressing their concerns.”

Since the comment not much else has been learned regarding the issue. It seems as if Square is currently not permitted to do business in Illinois. State law dictates: “no person in this state in the business of selling or issuing payments instruments” without appropriate licensing. Square supporters say this does not apply to the company as it does not hold funds in the same manner as a financial institution. 

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