Square has signed a wide-ranging agreement with Starbucks that has cemented the latter’s role in the rising mobile commerce economy. The coffee giant will from now on be accepting payments through ‘Pay with Square’ mode across the nation. With this deal, customers can also pay for orders directly from their phones. Square will now process Starbucks’ U.S. credit card and debit card transactions.
The news came as a pleasant surprise. In this mobile payments startup, Starbucks will also invest $25 million.
Also, Howard Schultz, president and CEO, Starbucks will be a member of Square’s board.
This deal is also assured to boost Square Directory. The directory within the Pay with Square app will list close by Starbucks locations. It will also alert customers of Starbucks of Square-equipped businesses. With this, Starbucks will finally combine the directory into its digital services, including its already popular mobile app.
This is the Square’s first major partnership with a national chain. The company has already proved itself to be the best in terms of providing solution for individuals and small businesses to take credit card payments. If it can control a massive enterprise such as Starbucks, it’s quite evident that the company has grand plans to increase its future sales.
Based in San Francisco, California, Square has raised around $141 million so far and there are rumors that the company is working on a $200 million round, which would value it at $3.25 billion. This large investment by Starbucks certainly points to something major happening in Square’s next round.