Starbucks starts taking Square Wallet
About 7,000 US Starbucks locations are beginning to accept payments using Square's mobile payment application for smartphones.
By Chris Ciaccia, TheStreet.com
The partnership that promises to bring the mobile-payments revolution to the forefront launched Nov. 8, as Square, the start-up that has developed a software-based mobile wallet, rolls out its mobile-payments app at approximately 7,000 Starbucks (SBUX) outlets.
As Square Wallet goes into effect for Starbucks customers, the two companies hope their relationship transforms the mobile-payments experience.
"We look forward to continuing to create amazing connections with our customers, both in our stores and outside of our stores, and offering our customers choices in how they want to pay," said Adam Brotman, Starbucks' chief digital officer, in a news release.
"Starbucks believes in the values and vision of Square," Brotman continued, "and just three months after announcing our partnership with Square we are thrilled to make the convenience of paying with the Square Wallet app available to our customers, starting today."
Square Wallet will give customers the ability to pay for what they buy at Starbucks while also exploring nearby businesses and browsing menu information, among other features. The free app is available on both Apple's (AAPL) iOS platform and Google's (GOOG) Android platform.
Square, led by Twitter co-founder Jack Dorsey, has been at the forefront of the mobile payments revolution. The company sees the Starbucks launch as an opportunity to see how customers use Square Wallet to pay for everyday goods and services.
Starbucks did $3.36 billion in revenue in its fourth quarter, with a significant portion of those transactions representing credit- and debit-card sales. Starbucks does not break down the percentage of payments.
Starbucks has its own mobile payment app, but the Seattle company's deal with Square takes mobile payments to another level.
"Starbucks has scale, with 7,000 U.S. stores, and the (Square) partnership will likely be a key reference case for awareness of mobile retailing," JPMorgan wrote in a recent research note.
According to Ernst & Young, mobile payments will become a big business. The market is projected to reach $245 billion by 2014. Companies are fighting hard for those dollars, and getting a jump on the competition is a potentially significant development.
More from TheStreet.com:
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Start investing in technology companies with help from financial writers and experts who know the industry best. Learn what to look for in a technology company to make the right investment decisions.
Hand-carved from an aluminum block, the 128-gigabyte ZX1 resurrects the iconic portable music player -- minus the cassettes -- for premium buyers in search of high-quality audio.
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'