In what will surely be a boon to caffeine-seeking techies everywhere, coffee giant Starbucks and Square, the San Francisco-based payment system startup, have reached a deal that will see Starbucks using Square’s system in all its U.S. stores. According to the report, Starbucks is putting 25 million into Square as part of the deal, which will also see Starbucks’ CEO Howard Schultz joining Square’s Board of Directors.
Here’s how it works: “Once the system is in place, customers will need to show the merchant a bar code on their phones. But when Starbucks uses Square’s full GPS technology, the customer’s phone will automatically notify the store that the customer has entered, and the customer’s name and photo will pop up on the cashier’s screen. The customer will give the merchant his or her name, Starbucks will match the photo and the payment will be complete.”
We’ve been fans of Square for quite awhile now with some of us here at The Flickcast using it frequently for personal and business transactions. It’s a great app with a lot of potential. This new deal will hopefully help the company achieve even greater recognition and levels of success.
Now if only Starbucks could work on improving the coffee. . .