Starbucks invests in new way for customers to pay
Aug 8, 2012, 12:00 PM | Updated: 1:14 pm
Starbucks has partnered with startup Square on a new mobile payment system that could dramatically spread the adoption of the technology. (AP Image)
(AP Image)
Starbucks customers will soon be able to pay for their morning coffee simply by saying their name. The company has announced a partnership with San Francisco startup Square in what’s being hailed as a major step in making mobile payments mainstream.
The agreement calls for Square to start processing transactions this fall.
It’s similar to the mobile payment system Starbucks currently uses. At first, customers will load up their accounts online from their credit card then wave a barcode from their smartphones.
Eventually, the stores will be able to use Square’s GPS technology to automatically identify a customer when they enter. The customer’s name and photo will pop up on a screen. The customer will then merely have to give his or her name and the transaction is approved, according to the New York Times.
Starbucks CEO Howard Schultz says the company will also invest $25 million in Square. The company was
started by Twitter creator Jack Dorsey in 2009.
