By Justine Espersen
Starbucks announced today is teaming up with mobile-payment platform Square, allowing customers to utilize the Pay with Square app. (Square (app) is the company that offers those little white square credit card readers that you can plug into your Android, iPhone or iPad that allow people to accept payments through credit card. Square also offers the free Pay with Square app that allows consumers to pay with the app without ever pulling out a wallet.)
This deal is expected to help boost everyday transactions, allowing the “best possible payment experience to both sides of the Starbucks counter,” Starbucks’ statement said.
The coffee company will invest $25 million in Square as part of its fourth round funding and will add Chairman, President and CEO Howard Schultz to Square’s Board of Directors.
As Square’s first major partnership with a national chain, they are expected to see a remarkable boost from this deal. Along with processing Starbucks credit and debit card transactions, Starbucks will include all their locations in Square’s directory and will integrate the directory into its digital systems.
When customers use the Square app, which is available for both Apple and Android devices, customers can pay with their credit/debit card on their Square account. Once checked out at their desired location, the customer’s name and photo will appear on the register as the Starbucks cashier can confirm it’s your sale.
This process will officially be made available this fall. U.S. customers can simply then download the Pay with Square application and set up an account.
“More than 2 million individuals and business can already use Square,” Co-founder and CEO of Square Jack Dorsey said in a statement. “This partnership will accelerate our ability to provide them with the tools they need to grow their business and thrive in today’s economy.”