The Starbucks/Square relationship is taking shape. Beginning today, Starbucks will accept Square Wallet for payments at 7,000 participating company-operated stores in the U.S.

Square Wallet acceptance at Starbucks is part of a deal signed between the coffee retailer and Square earlier this year. Under the agreement Starbucks will accept Square Wallet for payment, and Square will process all credit and debit card transactions made at Starbucks stores.

"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. "Starbucks was the first national retailer to offer its own mobile payment technology combined with a world-class loyalty program in January 2011, and we have seen a tremendous response from our customers with more than 100 million mobile transactions occurring in our U.S. stores since its launch.

Brotman added that Starbucks believes in the values and vision of Square and the company is thrilled to make the convenience of paying with the Square Wallet app available to its customers. 

Square Wallet allows customers of participating merchants to pay using only their names. Square Wallet uses a smartphone's geo-location abilities to determine that the customer is at a participating merchant. It then locates the customer's Square Wallet account, which is already linked to a bank or credit card account, and brings it up on the merchant's point-of-sale terminal. The store associate at the terminal then selects the customer account to complete the transaction.

"Square Wallet gives people an easy way to pay at Starbucks and neighborhood businesses," said William Henderson, Square Wallet director, in the announcement. "We're excited to work with Starbucks to introduce a broad new group of people to the benefits of using Square."

In addition to making payments at Starbucks, Square Wallet lets users browse through listings on the Starbucks Digital Network, a searchable directory of local businesses.

Starbucks customers will still be able to use the Starbucks mobile payment app as well. A big difference between the two payment apps is that Square Wallet will not track Starbucks reward points the way the company's own app does.

Square Wallet is available for both iOS and Android devices.

For more stories like this, visit the Restaurant research center.

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User Comments – Give us your opinion!
  • Margaux Panlilio
    45295407
    Square was just lucky because they were the 1st in the industry of MPOS. The partnership doesn't mean they are the best. I can always pay using cash in Starbucks and use my MPOS (www.mpowa.com) somewhere else more important.
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