Starbucks investing in Square, bringing mobile payments to US locations
Square, the trend-setting mobile payment system, has announced that they've been picked up by Starbucks. This fall, Starbucks will beging accepting mobile payments using Square throughout their 7,000 locations in the U.S. As noted on the Square blog:
It's amazing to think that Starbucks began as a single coffee shop in Seattle. The concept of taking a good idea and helping it grow is not foreign to them, and Starbucks doesn't just view Square as the simplest way to accept payments. They see an opportunity to extend and accelerate a model they grew up with: the idea that business is local and that community plays a vital role in job creation and economic vitality. When Starbucks builds the Square Directory into their apps and in-store Digital Network, it gives Square new visibility, driving more customers to opt-in to Square. And with nearly 7,000 Starbucks stores soon accepting Square, these new payers will be able to find your business (including coffeehouses) and pay with their name, building community and creating value.
In addition to that news, Square and Starbucks have also confirmed that Starbucks will invest $25 Million to help with Squares latest round of funding. Something that will surely help Square gain some advantage over competing companies that are now arising to take on mobile payment solutions.
For the past couple of years now Square has slowly been making it into the mainstream. Going full steam in 2010, they eventually launched their Square POS application for iOS with hopes to replace a traditional POS (point of sale) cash register with an iPad.
Overall, this new agreement between the two companies is a resounding nod of confidence in Square and their future in the mobile payments space while placing Starbucks at the forefront of that technology.