Square announced that Starbucks has signed up for the service, which is obviously a HUGE step in major Square adoption.
“Square began with a really simple idea: everyone should be able to accept credit cards,” said CEO Jack Dorsey, in a letter to Square merchants. “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,” continued Dorsey. “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.”
You can read the full letter here. Last night, he tweeted:
Customers will be able to pay at Starbucks using Square’s payer application, from participating stores in the U.S. later this fall. They will also be able to find nearby Starbucks locations in the Square Directory. The company also notes that Starbucks customers will more easily be able to discover other businesses using Square, via the directory.
Square will process Starbucks U.S. credit and debit card transactions, which Square says will significantly expand its own scale and “accelerate the benefits to businesses on the Square platform, especially small businesses, while reducing Starbucks payment processing costs.”
In addition to all of this, Starbucks is actually investing $25 million in Square, as part of the company’s Series D funding round, and Starbucks Chairman, President and CEO Howard Schultz is joining Square’s Board.
Now, if Dorsey can just get Starbucks to use his other product more. @starbucks hasn’t tweeted since July 27.
It’s certainly worth noting, by the way, that Starbucks also accepts PayPal payments.
As for Schultz, he’ll be the seventh member of Groupon’s board, joining Peter Barris, Kevin Efrusy, Brad Keywell, Eric Lefkofsky, Ted Leonsis, and Andrew Mason. Groupon appears very happy to have him, as well. The company stressed that Schultz was able to make Starbucks much more popular (and profitable).
The first part of this plan will go into effect on July 1st. Starbucks has promised that, starting that Thursday, there will be easy-to-access WiFi with no strings attached. Forget about hourly beverage purchases, obtaining a Starbucks card, or facing a time limit, in other words.