Square has once again hit the road to woo investors and raise some cash, according to a new report.
According to All Things Digital, citing unnamed sources, the payments company is attempting to raise new capital at valuation as high as $4 billion. The publication didn't say how much cash Square wants to raise, but if the ATD report is correct, the startup's valuation has skyrocketed in the last year.
Back in June, Square raised $100 million on a $1 billion valuation. In November, Virgin Group founder Richard Branson gave Square even more cash, though the company did not disclose how much it received nor what its valuation was at the time.
"I'm very passionate about helping people start and grow successful businesses, and Square is an incredible technology that inspires and empowers everyone to be an entrepreneur," Branson said at the time.
Square may be hot, but it also faces a new, deep-pocketed challenger in PayPal. Last month, the payment-solutions provider launched a triangular device called "PayPal Here" that plugs into a smartphone's headphone jack and allows retailers to swipe cards. John Donahoe, president and CEO of PayPal owner eBay, said his company's offering is similar to Square's, but better.
"We're bringing PayPal to merchants in the offline world," said Donahoe. "This product is better. This product is backed by PayPal. It's backed by 100 million customers...It will be trusted by brands around the world."
Square won't be so easy to overcome, however. The company announced last month that it's now processing $4 billion in transactions each year. The company also released an iPad app called the Square Register, which is designed to replace existing retail sales registers.
Square did not immediately respond to CNET's request for comment on the All Things Digital report.