Love ‘em or hate ‘em, Starbucks is a force to be reckoned with when it comes to retail, and it’s exactly what a burgeoning mobile payment provider like Square needs to rapidly accelerate its own business.
Square has announced a groundbreaking partnership with retail coffee giant Starbucks which promises to “stimulate small business growth and enhance payment experience for millions of customers.”
The deal will expand the fledgling Pay with Square service to “participating company-operated U.S. Starbucks stores” later this fall, and those same locations will also be available in searches from the Square Directory. The move lands Square-based payments in approximately 7,000 Starbucks stores across the country.
Perhaps most significant of all, Square will now process all Starbucks credit and debit card transactions in the United States, which promises to “accelerate the benefits to businesses on the Square platform” while actually reducing the payment processing costs for Starbucks at the same time.
“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.”
As part of the deal, Starbucks is investing $25 million into Square as part of the company’s Series D financing round and Starbucks chairman, president and CEO Howard Schultz will join Square’s board of directors.
The Pay with Square deal kicks off this fall using the existing iPhone and Android apps, which is available free from the App Store or Google Play, respectively.
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