Starbucks and Square are totally hooking up and aren’t afraid to let everyone know about it. The sprawling, ubiquitous coffee chain says it’s going to invest $25 million in Square as part of the deal, which will also have Square processing the retailer’s debit and credit card purchases.
Soon enough, Starbucks customers will be able to use Pay with Square’s mobile app to find the nearest Starbucks on either iPhones, iPads or Android phones, head there and then pay for any lattes with non-dairy-whipped-sugar-free-vanilla whatever.
Starbuck’s CEO Howard Schultz will also be signing on to hang out with Square’s board of directors, while Square’s CEO Jack Dorsey seems pleased as punch by the deal.
“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,” he said.
And who wouldn’t be excited about hooking up with such a ginormous retailer? This is a pretty big step for mobile payment platforms in the retail world. Other competitors like Google Wallet and PayPal will likely be scrambling to catch up and snag a big fish of their own after this coup.
“We’re proud that Starbucks chose Square, as we share the value of always putting customers first,” Dorsey said a the press release. “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.”
Starbucks in mobile payment deal with Square [CNNMoney]