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Square Swipes its Way Into Starbucks

Crown jewel of mobile payments?

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    NEWSLETTERS

    Square @ Starbucks

    Prepare to swipe.

    No longer content to be the darling of your local coffee shops, San Francisco mobile payment company Square has landed a deal to put its hardware and software into Starbucks.

    According to the New York Times, Square will handle all of Starbucks' credit and debit card transactions starting in the fall. Soon after, you can expect the Jack Dorsey-led company to let you order your favorite lattes through your mobile phone, as its software recognizes you when you walk in (I've done this in several smaller cafes that use Square - it's a pretty cool feeling).

    The deal marks a huge leap ahead of the competition for Square, which, even with early mover status, was something of an underdog to larger, more established payment schemes from companies like Intuit, Google, and PayPal. Landing Starbucks? That's huge.

    The deal reportedly involves a 25 million dollar investment by Starbucks into Square, which not only gives the SF company extra cash to grow, but it also cements a relationship between the two companies.

    So, if Starbucks is a habit, cool. But prepare to get used to ordering and not reaching for your wallet.

    Scott can be found on Jack Dorsey's other company, Twitter: @scottbudman