Mobile payment start-up Square just announced a pretty stellar partnership with Starbucks. Starting this fall, Square will be powering all credit and debit card payments at 7,000 Starbucks locations across the U.S. Bonus: Starbucks is also investing $25 million, and CEO Howard Schultz will join Square’s board.
Starbucks said it will be using the San Francisco-based start-up’s new Pay With Square app, which launched earlier this summer. The app lets users buy a croissant or a cup of Joe simply via mobile phone--no credit card swipe required.
The investment will bring Square’s value to a staggering $3.25 billion, according to The New York Times. The company has so far raised $166 million in total funding, and other investors include Richard Branson, Sequoia Capital, and Kleiner Perkins.
Currently, most of Square’s users are small businesses, which rely on the company’s credit card reader to process purchases. However, the Starbucks deal could make the new app more mainstream than the swipe-reader.
“The consumer is going through a seismic change in which cash is eventually going to be obsolete,” Schultz told CBS News.
Square, launched in 2009, has arguably been ahead of the curve in the mobile payment space, which has big competition from companies including Google, Intuit, and eBay's PayPal as big players.
FROM OUR PARTNERS
- Smarty Pants
- Maryland – #1 in Innovation & Entrepreneurship
- New Data on Success
- New book BUSINESS BRILLIANT by Inc.com blogger Lewis Schiff
- Old Dominion
- No matter what you ship, your business is our business. Visit odpromises.com.
- Constant Contact
- Over 500,000 Small Businesses Use Constant Contact®. Safe, Simple.
- The rugged Torque
- Buy 1 Kyocera Torque, get 4 free. Only at Sprint. Restrictions apply.
- AT&T Enhanced PTT
- Switch to AT&T Enhanced Push-to-Talk and get a free Samsung Rugby III.
- Undesk your desk phone:
- ShoreTel Dock for iPad/iPhone. BYOD better.
- Business Essentials
- Represent Your Company With A Custom Name Badge. Find It Here!
- Servers up to 45% off
- Technology optimized for today, but scalable for growing business needs.
- PCs You can Trust
- Discover how an ASUS PC with leading reliability is fit for your business