Starbucks teams with Square for mobile payments

Aug 08, 2012
Starbucks is pouring $25 million into electronic payments start-up Square in a partnership that expands mobile payment options at the coffee chain, the companies announced Wednesday.

Starbucks is pouring $25 million into electronic payments start-up Square in a partnership that expands mobile payment options at the coffee chain, the companies announced Wednesday.

Starbucks customers will be able to use the Pay with Square mobile application to buy their Java beginning in the fall, and find nearby Starbucks locations via Square Directory.

Meanwhile Square will process Starbucks US credit and debit card transactions, sharply expanding Square's scale and, in turn, lowering Starbucks's payment processing costs.

Starbucks has been a pioneer in mobile payments, with a mobile usable in the United States and Canada, and since the beginning of the year in Britain.

In December the Seattle-based global coffee franchise said it more than 26 million mobile payments transaction in less than a year.

"As the largest retail mobile in the US, we're excited and proud to accept payments with Square," said Howard Schultz, Starbucks chairman, president and chief executive, in a statement.

"The evolving social and digital media platforms and highly innovative and relevant payment capabilities are causing seismic changes in and creating equally disruptive opportunities for business."

Schultz will join Square's board of directors as part of the deal that will see about 7,000 company-operated US stores participating.

Square, based in San Francisco, offers retailers, especially small businesses, a way to process credit and debit card payments more cheaply than dealing directly with the card issuers.

Meanwhile its Pay with Square app provides consumers a near-seamless way of paying for purchases: cash registers recognize mobile phones using the app and the shopper's picture appears on the registers to confirm their identification.

"We're proud that Starbucks chose Square, as we share the value of always putting customers first," said Jack Dorsey, co-founder and CEO of Square.

"More than two million individuals and businesses can already use . This partnership will accelerate our ability to provide them with the tools they need to grow their business and thrive in today's economy," said the 35-year-old Dorsey, who also co-founded Twitter and is its executive chairman.

Shares in Starbucks slipped 0.6 percent in midday New York trade.

Explore further: Google sets up marketplace to buy patents

Related Stories

Payment startup Square rolls out iPad sales app

May 23, 2011

(AP) -- First, mobile payment service Square made it easier for merchants to accept credit cards anytime, anywhere, with just a smart phone and a tiny, plastic credit-card reader. Now the startup led by Twitter co-founder ...

Virgin tycoon Branson invests in Square

Nov 08, 2011

Square, a start-up from a co-founder of Twitter, said Tuesday that Virgin tycoon Richard Branson has invested in the mobile payments company.

Pay for a latte by mobile at Starbucks

Jan 19, 2011

US coffee chain Starbucks on Wednesday began allowing customers in its US stores to keep their cash and credit cards in their wallets and pay for their drinks with mobile phones.

Mobile pay start-up Square valued at $1 bln: report

Jun 29, 2011

A group of investors plan to buy a stake in Square that would value the mobile payment start-up at $1 billion even as it competes with much larger rivals, the Wall Street Journal reported Wednesday.

Recommended for you

Amazon unveils new business marketplace

1 hour ago

Amazon announced Tuesday it was launching a new business marketplace, in a move aimed at bringing the online giant's expertise to wholesaling.

Yahoo unveils new online video series

8 hours ago

US Internet giant Yahoo said it was expanding its online offerings, unveiling 18 new video series with which it hopes to attract a larger audience and advertisers.

Apple's Mac is selling strong, iPad not so much

8 hours ago

Apple's iPhone was again the company's star in the first three months of the year. The tech giant sold 61 million iPhones, or 40 percent more than in the same period a year ago. That represented about two-thirds ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.