As the adage goes, there is a Starbucks on every corner. What better way for a payment service company to reach critical mass than setting itself up at the most familiar cash register in America?
The New York Times reports today that mobile payment service Square will process all credit and debit transactions for Starbucks beginning in the fall. It’s a major coup for the mobile payment startup that has mostly been relegated to craft tables at flea markets and indie boutiques.
Starbucks aficionados can continue paying using the Starbucks app, but they can also pay by simply saying their name: Starbucks will harness Square’s GPS technology to confirm it’s really them by looking at a picture that’s automatically sent to their screen. The future, you guys.
Meanwhile, it’s a pretty sweet deal for Square, which takes a 2.75 percent fee for all credit card swipes.
The Times also reports that Starbucks has contributed $25 million to Square’s most recent bid for funding, finishing off the round. Square was reportedly seeking “roughly $200 million, which would give the company an implied valuation of $3.25 billion.”
That could buy Jack Dorsey a lot of handcrafted artisanal jeans.