Will Losing Starbucks Mean the End of Square?

Starbucks will soon stop accepting payments from Square, a mobile point-of-sale solution, Business Insider reported on Friday.

Starbucks currently accepts payments from Square Wallet, an app that was discontinued earlier this year, though users who had already downloaded the app could keep using it. Wallet was replaced by Order, which allows consumers to place and pay for orders in advance. On Wednesday, Square announced the official retirement of Wallet, though one of its features – Tabs, with which consumers can pay by “checking in” to a business and telling the cashiers their names – will be incorporated into the newest version of Order.

Square Order currently has partnerships with coffee shops in New York and San Francisco, though Starbucks isn’t among them. When Wallet officially ceases working – Square hasn’t said when this will be – Starbucks will no longer accept Square’s payments. The Seattle coffee giant has no plan to adopt Order, as it’s currently testing its own mobile payment solution in Portland, Oregon.

Square will continue processing Starbucks’ monetary transactions, despite the fact that  the brand will become a competitor once its mobile payment solution is officially rolled out. Square seems to be struggling – the platform is offering its Order feature for free, a potential draw for merchants who also have Apple, Amazon and PayPal as options.

Related reading

dna31_worlds_best_restaurants_5a
prog
specs
Mobile Payment
<