Starbucks Gets a Square Deal For $25m

Starbucks struck a deal with mobile payments startup Square last week, investing $25m in the company, and opening payments to Square users from the autumn.

Square was founded by Jack Dorsey, who also came up with the concept for Twitter.

The deal means that customers will be able to use Pay with Square, Square’s payment application, at some US Starbucks stores from the autumn, and find nearby Starbucks locations within Square Directory. Users of Pay With Square will be able to pay using either iOS or Android apps, but will need to download the app in order to pay.Square will also process Starbucks US credit and debit card transactions, expanding Square’s scale, and reducing Starbucks payments costs. Starbucks chairman, president and ceo Howard Schultz will join Square’s board of directors.

Dorsey says: “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.”

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