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Jack Dorsey: Today Starbucks Signed up for Square

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Re: Jack Dorsey: Today Starbucks Signed up for Square

#71

Post by pbreit »

spullara wrote: post #43
pbreit wrote: post #11

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 Squa…

Pay with square app doesn't use the dongle at all.

The note talks about processing all Starbucks cc txns.

Re: Jack Dorsey: Today Starbucks Signed up for Square

#72

Post by jimmytucson »

jcdavis wrote: post #51
bigiain wrote: post #50

Earlier quoted context omitted.

"I would assume that a majority of that revenue is through a card." Really? I almost never use a card for café type purchases. Maybe if I were buying a meal, but for a coffee or two I'm 99% likely to use cash. (Note: mine is an Australia-centric view, perhaps things really are very different in the USA?)

Yes. The vast majority of payments I see in Starbucks in the US are via credit cards (or debit cards). With modern PoS systems, paying via card is faster and more convenient than cash, not to mention other benefits (rewards on cards, being able to better track spending)

I used to work at Starbucks (albeit going on 5 years ago) and although I don't have the exact statistics or a perfect memory, it was not a "vast majority". If I had to guess, I'd say probably something like 2/3. Maybe the ratio increases if you count Starbucks gift cards.

Either way you look at it, Square's transaction volume surges with this deal. Good on both parties.

Re: Jack Dorsey: Today Starbucks Signed up for Square

#73

Post by stock_toaster »

gootik wrote: post #54
faramarz wrote: post #14

This 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 nea…

While I'm happy for Square, I'm saddened that Starbucks gets special treatment. Why is Starbucks (a well known brand) getting a personal post written by Jack, when Square's "goal" is to promote and help small businesses? Maybe a more subtle way of informing the world about this partnership was better.

  > Why is Starbucks (a well known brand) getting a personal post written by Jack, when Square's "goal" is to promote and help small businesses?
Maybe the 25 million Starbucks invested in Square?

Re: Jack Dorsey: Today Starbucks Signed up for Square

#74

Post by philip1209 »

jevinskie wrote: post #44
faramarz wrote: post #14

This 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 nea…

"Square will process Starbucks U.S. credit and debit card transactions": Wikipedia says that Starbucks has $11.7 billion in revenue every year. I would assume that a majority of that revenue is through a card. I am not familiar with Square's revenue but I feel that this will at least double their transactions. Am I correct?

Your first stated assumption is correct, but do not assume that all of Starbucks credit card transactions are processed through Square. Thus, the second assumption is not linear.

Re: Jack Dorsey: Today Starbucks Signed up for Square

#75

Post by jordo37 »

Awesome news for square. I am very eager to see how this changes the natures of: 1) The Starbucks App - will square replace it outright or will there be an option to use starbucks or square? 2) Paying with a card at starbucks - same registers or new registers with square dongles? Hopefully its a better dongle if so...

PS - Anyone noticed how they seemed to be stepping around the idea of those local businesses being other coffee shops? Craft businesses in the Press Release...like craft coffee shops?

Re: Jack Dorsey: Today Starbucks Signed up for Square

#76

Post by martinkallstrom »

ben1040 wrote: post #9
joering2 wrote: post #4

Can someone explain me what it means for customers? As far as NYC goes, each Starbucks accepts Visa, Master Card, Discovery and American Express (the card that plenty businesses hate). So what is the benefit for the customers?

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.

Is there any information available on how this works with iPhone? Does the app have to be running in order for the geo-fencing to work? Thankful for any information on this.

Re: Jack Dorsey: Today Starbucks Signed up for Square

#77

Post by lmm »

philip1209 wrote: post #62
joering2 wrote: post #4

Can someone explain me what it means for customers? As far as NYC goes, each Starbucks accepts Visa, Master Card, Discovery and American Express (the card that plenty businesses hate). So what is the benefit for the customers?

> "[. . . ] American Express (the card that plenty businesses hate) [ . . . ]" This is divergent, but I feel compelled to defend Amex here on the basis of quality of leads and consumer ethics, with the main contention being a higher processing fee for Amex relative to Visa and Mastercard. # Quality of leads "Amex cards account for approximately 24% of the total dollar volume of credit card transactions in the US, the…

So Amex only offer their cards to rich people (who are better at managing their balances, and spend more money), and then uses the fact that their customers are rich as leverage to charge merchants more? And you see this as a positive?

Re: Jack Dorsey: Today Starbucks Signed up for Square

#79

Post by robryan »

bigiain wrote: post #50
jevinskie wrote: post #44

Earlier quoted context omitted.

"Square will process Starbucks U.S. credit and debit card transactions": Wikipedia says that Starbucks has $11.7 billion in revenue every year. I would assume that a majority of that revenue is through a card. I am not familiar with Square's revenue but I feel that this will at least double their transactions. Am I correct?

"I would assume that a majority of that revenue is through a card." Really? I almost never use a card for café type purchases. Maybe if I were buying a meal, but for a coffee or two I'm 99% likely to use cash. (Note: mine is an Australia-centric view, perhaps things really are very different in the USA?)

To add to this, often cafes enforce a minimum transaction size, such as $10, to use card. This means usually you only use card it you are grabbing lunch as well.

Re: Jack Dorsey: Today Starbucks Signed up for Square

#80

Post by philip1209 »

lmm wrote: post #77
philip1209 wrote: post #62

Earlier quoted context omitted.

> "[. . . ] American Express (the card that plenty businesses hate) [ . . . ]" This is divergent, but I feel compelled to defend Amex here on the basis of quality of leads and consumer ethics, with the main contention being a higher processing fee for Amex relative to Visa and Mastercard. # Quality of leads "Amex cards account for approximately 24% of the total dollar volume of credit card transactions in the US, the…

So Amex only offer their cards to rich people (who are better at managing their balances, and spend more money), and then uses the fact that their customers are rich as leverage to charge merchants more? And you see this as a positive?

They don't have to be rich.

* The fact that they pay an annual fee (even with Zync) means that they have "skin in the game" - if they use the card more, the fee is diluted on a per-purchase basis.

* "customers are rich" - it's not necessarily that customers are rich, but that they spend more per month. This more specifically applies to business customers. For example, my carpentry business could use Amex as the company card, and while I could spend a lot of money per month buying carpet to install, it doesn't mean that I am rich.

* Higher income can disproportionately correlate to dispensable income, and credit cards are more likely to be used on dispensable income (e.g. restaurants) rather than more core needs (e.g. rent)

* " Various sociological statistics suggest the severity of wealth inequality 'with the top 10% possessing 80% of all financial assets [and] the bottom 90% holding only 20% of all financial wealth.'" [1] -> Even if Amex just offers their cards to rich people, it's an objectively viable business model that in itself justifies the higher transactional fee.

--

[1] http://en.wikipedia.org/wiki/Wealth_inequality_in_the_United...

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