Starbucks, Square Go Separate Ways on Mobile Payments (Dec. 22, 2014)
The mobile payments piece of Starbucks’ partnership with Square has ended. Though the coffee giant remains an investor in Square—and the payments company continues as processor for Starbucks’ credit and debit payments—Square customers no longer may use the mobile payments service to check out at Starbucks stores, the two companies said this month.
Square earlier this year said it’s retiring Square Wallet and replacing it with Square Order, which includes a feature called Tabs that enables users to check in at stores and pay by telling the cashier their names. Starbucks separately has been developing a mobile ordering system to enhance its vaunted mobile payments app. The Seattle-based company began testing its order-ahead feature this month at some Portland stores, aiming to roll it out nationally next year.
Starbucks and Square announced their partnership in 2012, when Starbucks invested $25 million in Square and Starbucks CEO Howard Schultz joined Square’s board of directors for 15 months. As part of the partnership, Starbucks has sold Square set-up kits at its stores.
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