Mobile payment system Square and retail coffee giant Starbucks Coffee partner to bring Square’s innovative mobile payment system to Starbucks Retail stores. This is a huge boost for Square as Starbucks boasts lots of retail locations and clients who are open to alternate payment systems that give additional benefits.
Founded in 2009 by Twitter co founder Jack Dorsey, Square provides free card readers to users and issuers and charges a 2.75% processing fee, Square’s revenue model is based entirely on cashless convenience and makes it easy for smaller retailers to accept credit cards and even easier for customers to pay for stuff using their phone.
No stranger to pioneering cashless payment systems, Starbucks popularized store value cards (gift certificates containing cash value) with their iconic and collectable Starbucks Card. The Starbucks Card currently processes a million dollars a week and has Starbucks’ customers primed to try a new system that has even more convinience measure expected to roll out gradually.
One of the compelling future use cases is the cashier being able to spot regular customers on-screen when they are headed to your store by way of GPS and user signup. This allows for retailers to reward regular customers by essentially entering into a virtual VIP line that only the retailer can see on their POS systems.