Starbucks Partners with Square to Offer New Payment Options and Rewards
Starbucks, the world's largest coffee chain, announced today that it will start accepting Square, a mobile payment platform, in all of its U.S. stores by the Fall. The partnership will also include a $25 million investment from Starbucks in Square and a seat on its board of directors for Starbucks CEO Howard Schultz.
Square, founded by Twitter co-founder Jack Dorsey, allows users to pay for goods and services with their smartphones by linking their credit or debit cards to a free app. Square also offers a loyalty program called Square Wallet, which lets users collect rewards and discounts from participating merchants.
According to Schultz, the deal will benefit both Starbucks and Square customers by providing them with more convenience, choice and value. \"As the largest retail mobile payment platform in the U.S., we're excited to partner with Square to bring their innovative technology to our customers and enhance our digital payment capabilities,\" he said in a press release.
Dorsey, who will join Schultz on the board of Square, said that the partnership will also help small businesses grow and thrive. \"By accepting Square, Starbucks is giving millions of customers another way to enjoy their favorite coffee while also supporting local businesses across the country,\" he said.
The partnership will also include a $25 million tip from Starbucks to Square, which will be distributed among Square's employees and merchants as a gesture of gratitude and appreciation. \"We're thrilled to receive this generous tip from Starbucks, which reflects our shared vision of empowering people to pursue their passions,\" said Alyssa Henry, Square's head of seller services.
Starbucks and Square plan to roll out the new payment option in select stores this summer, before expanding it to all U.S. locations by the Fall. Customers will be able to pay with Square by scanning a QR code on their phones or by using their names as identifiers. Starbucks will also continue to accept its own mobile app, gift cards and other forms of payment.
The partnership between Starbucks and Square is the latest in a series of initiatives by the coffee giant to enhance its digital presence and customer loyalty. Earlier this year, Starbucks launched a new mobile ordering and payment feature, which allows customers to place their orders and pay ahead of time through the app. The feature is currently available in more than 7,000 U.S. stores and is expected to expand to other markets soon.
Starbucks also recently revamped its rewards program, Starbucks Rewards, which now offers more benefits and flexibility to its members. Customers can now earn two stars for every dollar spent at Starbucks, redeem their stars for any menu item at any time, and enjoy free refills, birthday treats and personalized offers. The program has more than 12 million active members in the U.S. and is one of the most popular loyalty programs in the country.
As for Square, the partnership with Starbucks will boost its visibility and reach among consumers and merchants. Square currently has more than two million sellers in the U.S., ranging from small businesses to large retailers. The company also offers a range of products and services to help sellers manage their businesses, such as Square Register, Square Capital, Square Cash and Square Payroll.
Both Starbucks and Square share a common vision of creating a seamless and rewarding customer experience through innovation and technology. By joining forces, they hope to set a new standard for mobile payments and loyalty in the retail industry. ec8f644aee