Starbucks has chosen Square as its mobile payments partner in the United States. From the autumn, customers at Starbuck’s 7000 US outlets will be able to use the mobile start-up’s service. Many commentators have noted that this move is a real blow for PayPal and the PayPal Here service.
As part of the deal, Starbucks will be investing $25m in Square, which was founded by Twitter co-founder Jack Dorsey. Of the deal, Dorsey said: “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.”
Starbuck’s CEO, Howard Schultz, who will become a director of Square as part of the deal said: “As the largest retail mobile payment platform in the US, we’re excited and proud to accept payments with Square. Highly innovative and relevant payment capabilities are causing seismic changes in consumer behaviour and creating equally disruptive opportunities for business.”
Currently, neither Square or PayPal Here are available in Europe.