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Starbucks adopts Square for Payments

Aug 8 2012, 8:46am CDT | by , in News | Technology News

Starbucks adopts Square for Payments
 
 

Huge announcement from Jack Dorsey's cool Square payment company. Starbucks is new big adopter and also investor.

Square announced today that Starbucks chose Square for payments. By accepting Pay with Square, Starbucks is giving millions of customers another way to enjoy a quick and seamless payment experience at approximately 7,000 Starbucks stores. Beginning this fall, in addition to the existing iPhone® and Android™ Starbucks mobile payment applications, Starbucks customers will be able to use Pay with Square to pay for their purchases at participating company operated Starbucks locations in the U.S. Customers simply need to download the Pay with Square application and set up an account on their iPhone or Android device.

The partnership terms go beyond Starbucks adopting Square:

  • Customers will be able to use Pay with Square, Square’s payer application, from participating company operated U.S. Starbucks stores later this fall, and find nearby Starbucks locations within Square Directory;

  • Square will process Starbucks U.S. credit and debit card transactions, which will significantly expand Square’s scale and accelerate the benefits to businesses on the Square platform, especially small businesses, while reducing Starbucks payment processing costs;

  • Using Square Directory, Starbucks customers will be able to discover local Square businesses -- from specialty retailers to crafts businesses -- from within a variety of Starbucks digital platforms, including the Starbucks Digital Network and eventually the Starbucks mobile payment application;

  • Starbucks will invest $25 million in Square as part of the company’s Series D financing round;

    • Starbucks chairman, president and ceo Howard Schultz will join Square’s Board of Directors.
    “As the largest retail mobile payment platform in the U.S., we’re excited and proud to accept payments with Square,” said Howard Schultz, Starbucks chairman, president and ceo. “The evolving social and digital media platforms and highly innovative and relevant payment capabilities are causing seismic changes in consumer behavior and creating equally disruptive opportunities for business. Both Starbucks and Square take a similar approach when building products and running our businesses, and together we can bring the best possible payment experience to Starbucks customers.”
    “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 2 million individuals and businesses can already use Square. This partnership will accelerate our ability to provide them with the tools they need to grow their business and thrive in today’s economy.”
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