Mobile payment startup Square has been gaining ground fairly quickly since it was first introduced, and according to an announcement on the Square blog, the company has just landed its biggest payment partner yet: Starbucks! Pictured below are Square CEO Jack Dorsey and Starbucks CEO Howard Schulz shaking hands over the deal.
Beginning this fall, Starbucks will use Square as their main payment processor, allowing all of their customers to make mobile payments using Square’s app on their smartphone – a very significant boost for Square, with over 7,000 Starbucks shops feeding into their revenues.
From the Square blog:
I am pleased and proud to announce that today Starbucks signed up for Square.
Square began with a really simple idea: everyone should be able to accept credit cards. It should be easy and free to get set up, it should use simple technology people already own, and, most importantly, it should instantly adapt to any size business—from the person chasing a dream to the largest organization on the planet. By embracing Square, Starbucks has validated these ideas as powerful tools—not just for small businesses, but for smart businesses.
Besides picking up Square as their payment partner, Starbucks will also invest $25 million to help boost Square’s funding, potentially granting them a significant advantage against other mobile payment solutions, such as Verifone’s Sail.
Up until now, Square’s rise into the mainstream has been rather slow – however, I imagine partnering with Starbucks will help accelerate that process very significantly, not only by boosting Square’s revenue, but by putting their name in front of many more consumers.
Square’s biggest claim to fame is its offer of a free credit card reader for iOS devices or Android, and the ability for anyone to sign up as a merchant with no monthly fees (just a 2.75% transaction fee) and process credit cards on the go.