Starbucks mobile payments expanding with Square technology

Starbucks is definitely a chain that wants to appeal to tech-savvy people, because it’s a great ploy to get people to overpay for coffee. However, said egregiously-priced cappuccinos can be paid for using the coolest gadgets, as Starbucks mobile payments capacity is expanding.

Starbucks mobile payments part two: The refill

People love coffee and technology. They also love shelling out lots of money for both. Whether the amount one pays for an iPhone or a mocha is worth it or not, remains up for debate. However, Starbucks was one of the first to bring these two loves together.

The company unleashed the Starbucks mobile card app in 2011, according to CNET. The app, a Starbucks mobile payment app, allowed people with a reloadable Starbucks card to link their checking, credit or PayPal account to their Starbucks card. If they stopped in for coffee, or bought official Starbucks merch somewhere else, they simply fired up the app, entered the purchase and waited for the app to process the payment.

Then, according to Mashable, a barcode would appear that would be scanned at a register and yea, the people were pleased. However, this was not enough.

Hip to be Square

One of the major players in mobile payments currently is Square, the company that unleashed the little mobile card reader for smartphones. The device plugs into the headphone slot and using the company’s app, turns a phone into a mobile credit or debit card processor. Square later introduced a “mobile wallet” of sorts, which is a full mobile payment processing suite that makes purchases using Square software.

Starbucks, according to Forbes, has just brewed up a large amount of capital for Square as an investment. As a result, the company is expanding its mobile payments capacity, as Square is going to integrate its software into Starbucks’ point of sale terminals. The system will be used, according to CNN, via a bespoke Pay with Square app for Starbucks, which communicates with the registers.

The bank account linked to the user’s Square account will be deducted the cost of their drinks or whatever else they buy at Starbucks. Hopefully the convenience of the technology doesn’t force anyone to get personal loans to cover their coffee habit.

Going to 7,000 locations

The Starbucks mobile payments set up is going to be installed at about 7,000 locations nationwide. The roll-out is going to be in the fall, when Square rolls out its new mobile payment software.

Square payments are attractive to small businesses, as they are much less costly than typical point-of-sale machines. Another benefit, according to the Minnesota Star Tribune, is that Square charges much lower swipe fees than traditional credit and debit transaction processing entails.

Sources

CNET

Mashable

Forbes

CNN: http://money.cnn.com/2012/08/08/technology/starbucks-square-mobile/index.htm

Minneapolis Star Tribune: http://www.startribune.com/business/137394018.html?refer=y