updated 07:05 pm EST, Thu January 3, 2013
Availability of reader advances Square and Starbucks partnership
Expanding its partnership with mobile payment service Square, Starbucks announced today that it has commenced sales of Square Mobile Card Readers in its 7,000 US stores. The companies have already partnered to allow Starbucks customers to access the Square Directory while in the stores, and Square processes Starbucks' US credit and debit card transactions. The payment processing hardware and app combo is available for $10, with a $10 rebate for first-time users. Square takes a flat 2.75 percent of transactions processed by the card reader.
Forrester analyst Denee Carrington said that Square has been "working with the moms and pops of the world, small coffee shops and that kind of thing, but this certainly gives them another level of presence in the market. Now in addition to the neighborhood coffee shop, they’ll be at every corner of New York City."
Starbuck's chief executive Howard D. Schultz is on the Square board of directors. In addition, in August, Starbucks invested $25 million into the startup.