While we knew that Square was coming to Starbucks sometime later this year, it’s now been revealed that the partnership is launching in early November. Instead of having to use your credit card or cash, you’ll be able to use the free Square app to pay for your skinny vanilla latte.
I want to be able to ditch my wallet so bad, mostly because I have a tendency to lose it or forget it at home. But I never ever leave home without my iPhone, and yeah, Passbook is cool but businesses aren’t really using it yet and I’m impatient. I just want the future to be here right now.
I’ve been really intrigued by Wired’s Christina Bonnington as she’s trying to live a walletless life, and it seems like one of the biggest hurdle right now is knowing where you can ditch your wallet and pay for goods with a service like Square, and where you can’t. Right now it seems like Square is trying harder than anyone to help you ditch your wallet, and they just made things a little easier by creating Square Directory so you can see all the places you can pay for goods with Square Wallet.
Making more money than with just your credit card transaction fees.
Closing its fourth round of funding, the mobile credit card processing company just raised $200 million, making it worth a staggeringly large $3.25 billion. The company, built by Jack Dorsey of Twitter fame, allows anyone with an iPhone, iPad, or other compatible mobile device, to accept credit cards. Square is widely seen as the industry leader in the mobile payment-with-a-dongle space (I just made that term up), as evidenced by other dongles released shortly thereafter by the likes of PayPal and Intuit, among others.
In what may come as no surprise, the COO of Square, Keith Rabois, is on record at All Things D, saying that the transition from current registers and point of sale devices (like ATM card-swiping devices) to iPads or other tablets will happen within the next year and a half. Square’s partnership with Starbucks is only the first of the steps being taken actively by Square to make this a self-fulfilling prophecy.
PayPal looks to expand its mobile payment market share and features with an app-based payment trial at McDonald’s locations in France.
Square’s announcement of its partnership with Starbucks and the launch of new mobile payment company by several key retail and service chains were signs that the mobile payment industry and digital wallet concept is big business. Late last week, however, there was more news on the mobile payments front that proves that the race is far from over – one could even say that it’s barely started.
In a move that could make Square’s deal with Starbucks seem small and limited, Reuters reports that PayPal may soon be expanding its brand of mobile payments to include on the biggest fast food chains on the planet – McDonald’s. PayPal is currently testing a payment system in 30 McDonald’s locations in France. The company demoed the technology earlier this year.
Square is courting small business with new rules and lower transaction fees.
Last week, Square announced a partnership with Starbucks to provide back-end payment processing and CRM for the coffee mega-company. Today, Square brings news of the other end of the business spectrum. Small businesses who make less than $250,000 per year will no longer have to pay the standard 2.75 percent per swipe processing fee (though they can still opt for this) if they pay one flat rate, currently set at $275 monthly.
If a small businesses chooses the flat rate option, they’ll essentially end up paying 1.3 percent per swipe – a significant savings if they meet the criteria. IF the business goes over the line, they’ll be charged the standard per-swipe rate.
This is Square making sure that it can have as many users as possible, from super corporate giants to small mom and pop shops with a bit of tech savvy.
Major retails join forces on mobile payments system to fend of Google, PayPal, Isis, and other potential digital wallet competitors like Apple.
In a move that makes the Square/Starbucks partnership announced last week look like small potatoes, a group of national and international retailers announced plans to develop their own mobile payment network complete with mobile apps and digital wallet functionality. The move seems almost certain to shake up the nascent mobile payments market where a wide range of companies and organizations have been trying to figure out the secret sauce that will turn mobile payments into a mainstream retail system for the past couple of years.
The Merchant Customer Exchange or MCX, as the new company is known, plans to deliver a solution that offers convenience in both making purchases and in receiving customizable offers from retailers. Development of a mobile app and payment network are underway, but MCX has yet to announce any details about either the app or its network.
Square scored its big partnership with Starbucks by realizing mobile payments aren’t really about mobile payments.
Last week’s announcement that Starbucks is partnering with Square for mobile payments and credit card processing is big news for the nascent U.S. mobile payments market. It was also a warning shot fired by the startup across the bow of traditional payment processing companies, many of which have struggled to bring together an effective and successful digital wallet (or iWallet) solution. The move could also complicate any plans that Apple has to move into that market following the release of iOS 6 and its Passbook feature.
Square just announced a huge partnership with Starbucks that will put the hot mobile payment startup in 7,000 Starbucks nationwide this fall. The news means that Square users will be able to use the app to pay at select Starbucks locations and find nearby stores in the Square Directory.
As part of the partnership, Starbucks is investing a cool $25 million in Square and the CEO of Starbucks will be joining Square’s Board of Directors. This is definitely a win-win for Square, Starbucks, and the mobile payment industry as a whole.