Mobile payments company Square has signed an
agreement with Starbucks to provide the global coffee chain with
its mobile payments technology.
Starbucks will invest USD 25 million to
replace transaction systems in the US and use Square’s payer app,
“Pay with Square” and store localiser app “Square
Directory”.
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Pay with Square allows users to electronically
open tabs in local shops and pay just by saying their name at the
counter. The point of sales can then recognise and connect to the
user’s account and charge the linked card.
This and the other Square products, such as a
smartphone compatible card reader, were conceived to reduce card
transaction costs for SME businesses.
The investment follows the announcement that
Square will raise some $200 million in new funding from
private-equity investor Suhail Rizvi, and confirms the growing
trend of the two-year-old start-up.
“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,” said Jack Dorsey,
Square co-founder and chief executive.
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By GlobalDataStarbucks president Howard Schultz said:
“As an entrepreneur, I understand how critical it is for new
businesses to have easy and affordable access to card processing
while also giving customers a choice in how they pay”.
Schultz will also join Square’s board of
directors.
