Starbucks partners to use Square, will invest $25 million
Square and Starbucks have announced a partnership that will see the coffee company begin using the start-up’s services at about 7,000 of its U.S. stores this fall while also investing $25 million in it.
The partnership will let Starbucks customers use the Pay with Square app to open a tab at the company’s shops and pay using their connected credit card without having to pull the card out.
The Seattle coffee company will also put Square in charge of handling its debit and credit card transactions, according to a press release, which it says will reduce “Starbucks’ payment processing costs.â€
“By accepting Pay with Square, Starbucks is giving millions of customers another way to enjoy a quick and seamless payment experience at approximately 7,000 Starbucks stores,†the release says. “The partnership will also accelerate the ability of small businesses to grow with Square’s innovative technology and a stronger and more widely available Square network.â€
The Square Directory, which shows businesses that are using Square, will also become accessible later on through Starbucks apps, greatly expanding Square’s visibility and that of its partners. And Starbucks customers that already use the coffee company’s app to pay with their phone will continue to be able to do so.
On top of that, Starbucks is also going to be investing $25 million on the start-up company as part of its series-D financing round, and Starbucks chief executive Howard Schultz will be joining Square’s board of directors.
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