Interesting. Starbucks is obviously not going to use the error-prone dongles. I suspect Square will provide some sort of custom "Pay With Square" solution, perhaps tied into Starbucks' existing point-of-sale system. Any way you look at it, it's a huge deal for Square, Starbucks is absolutely the best venue for Square and likely the key building block to really push out a new checkout experience such as "Pay With Square".
Jack Dorsey: Today Starbucks Signed up for Square
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Re: Jack Dorsey: Today Starbucks Signed up for Square
#12Wow, huge deal for Square. I'm very curious what the terms of the deal are: presumably Starbucks isn't willing to pay much more than what their current processing fees are (maybe a tiny bit more for the premium of being able to use Pay with Square?), so Square must be losing a decent chunk of change in exchange for the huge marketing and growth this gets them.
Starbucks will be saving money at Square's 2.75% rate - it is cheaper than interchange at below $15 transaction size.
See: http://www.quora.com/Square-Inc-1/Can-Square-make-money-with...
Re: Jack Dorsey: Today Starbucks Signed up for Square
#13Earlier quoted context omitted.
One cool feature about the Square mobile app is you can set up geofenced "tabs" that automatically get opened if you get close enough to an establishment. So you keep your phone in your pocket, walk into Starbucks and order a drink as you do every morning. You tell them "put it on John's tab." You get a receipt in your email immediately thereafter, and never have to pull out your phone or wallet.
Doesn't this now or won't it eventually dismiss with the credit card portion all together thus making the margin available to Square?
Right now it just settles the charge to whatever credit card you have on file with Square.
Maybe eventually Square will let you link it to a bank account or prepaid account and they'll keep the spread.
Re: Jack Dorsey: Today Starbucks Signed up for Square
#14This announcement makes me happy, for Square and Jack Dorsey as a young business leader. I love everything about the business idea, execution, design and tone of the overall strategy.
Noteworthy points from the press release
The partnership terms include:
- Customers will be able to use Pay with Square, Square’s payer application,
from participating company operated U.S. Starbucks stores later this fall, and
find nearby Starbucks locations within Square Directory;
-Square will process Starbucks U.S. credit and debit card transactions, which
will significantly expand Square’s scale and accelerate the benefits to businesses
on the Square platform, especially small businesses, while reducing Starbucks
payment processing costs;
- Using Square Directory, Starbucks customers will be able to discover local
Square businesses -- from specialty retailers to crafts businesses -- from
within a variety of Starbucks digital platforms, including the Starbucks
Digital Network and eventually the Starbucks mobile payment application;
- Starbucks will invest $25 million in Square as part of the company’s Series D
financing round;
- Starbucks chairman, president and ceo Howard Schultz will join Square’s
Board of Directors.
Re: Jack Dorsey: Today Starbucks Signed up for Square
#15Jack's signature is "@jack"? Nice.
Re: Jack Dorsey: Today Starbucks Signed up for Square
#16[deleted]
Re: Jack Dorsey: Today Starbucks Signed up for Square
#17The announcement aside (line 1 of 20), this "letter" is some poor PR spew. Jack, if you're listening, you need a personal letter stylist. Letters are like jeans that people read.
Re: Jack Dorsey: Today Starbucks Signed up for Square
#18Is this yet another middle man to suck fees out of the system? I have not kept up with Square but despise the though of yet another fee leech that is compiling a list of my purchases to sell to annoying advertising companies.
/shoutAtClouds
Re: Jack Dorsey: Today Starbucks Signed up for Square
#19Holy grey-on-grey readability disaster, Batman!
And shouldn't 140 characters have been enough?
Re: Jack Dorsey: Today Starbucks Signed up for Square
#20Wow, huge deal for Square. I'm very curious what the terms of the deal are: presumably Starbucks isn't willing to pay much more than what their current processing fees are (maybe a tiny bit more for the premium of being able to use Pay with Square?), so Square must be losing a decent chunk of change in exchange for the huge marketing and growth this gets them.
Losing a decent chunk of change? How can they lose something they wouldn't otherwise have had at all? It's only normal to assume that they have special terms for Starbucks, but it doesn't mean they're losing anything.
Unless you mean that Square is providing the service at a loss to Starbucks?