Starbucks Picks Square for Payments; Schultz to Join the Board and Invest $25 Million
Starbucks is investing in Square, the mobile payments provider, and will use it going forward to process all of its credit and debit transactions.
The two companies made the announcement late this evening, adding that Starbucks will also invest $25 million in Square’s fourth round of funding, which has not yet been announced, but had been rumored to value the company up to $4 billion.
Following the investment, the New York Times notes that the company will be valued at $3.25 billion. As part of the transaction, Starbucks CEO Howard Schultz will join Square’s board.
Wow! We use Square for all of our street fair sales, but now Starbucks will be using it in some of their locations this fall!
P.S. Did you know there’s an app that will allow you to pay with Square from your smartphone?