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Square begins to phase out Wallet

Square Wallet users found out last week that the app no longer worked at Starbucks' 7,000 locations.

Square Wallet is not longer active at Starbucks but the two companies will continue to work together as Square processes payments for the coffee giant. 

Square Wallet users found out last week that the app no longer worked at Starbucks' 7,000 locations. Square also sent an email to users to remind them that the company was phasing out Square Wallet early next year.

The news comes as no surpise since Square announced earlier this year it would discontinue Square Wallet in favor of Order, which enables users to place and pay for orders ahead of visiting select establishments. Starbucks will not accept Order since it plans to roll out a similar feature in its own app nationwide in 2015. 

Square's initial partnership with Starbucks was supposed to elevate Wallet's standing, but that never happened. Instead, multiple media outlets relayed their frustration with trying to pay with the app as confused baristas looked at them with blank stares and shrugged their shoulders.

Square's current intent with Order is to drive new customers into businesses integrating the app's capabilities into their systems, the company told Re/code earlier this year. Ajit Varma, director at Square, told the publication he believes the app will appeal first to an establishment's current customer base, but will eventually lead to new prospects thanks to an advertising campaign and loyalty programs.