Mobile payments company Square has partnered with Starbucks. Now Square will start processing all U.S. credit and debit card transactions at participating Starbucks stores across their 7,000 locations. This would definitely boost Square’s annual payment processing of $6 billion per year. “Pay with Square” users will be able to find a nearby Starbucks using the Square Directory from their iPhone or Android smartphone.
Starbucks will also invest $25 million into Square for the company’s Series D round, which will put them at a $3.25 billion valuation. Additionally, Starbucks CEO Howard Schultz will become a Square board of director.
Below is what Square CEO Jack Dorsey wrote about the deal:
I am pleased and proud to announce that today Starbucks signed up for Square.
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.
It?s amazing to think that Starbucks began as a single coffee shop in Seattle. The concept of taking a good idea and helping it grow is not foreign to them, and Starbucks doesn?t just view Square as the simplest way to accept payments. They see an opportunity to extend and accelerate a model they grew up with: the idea that business is local and that community plays a vital role in job creation and economic vitality. 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. And with nearly 7,000 Starbucks stores soon accepting Square, these new payers will be able to find your business (including coffeehouses) and pay with their name, building community and creating value.
Our customers make us who we are, and we are proud of every single one of you?including our newest. Our promise to you remains the same: build simple, affordable, and fast tools that level the playing field for everyone. Thank you for helping us build Square. And please share your thoughts and tweets; I?m listening.
As Howard Schultz says: #Onward,