Mobile payments is a huge new market that no one is quite sure what to do with yet. Everyone has a different philosophy on how to make it all work, and while everyone else is competing, Starbucks has built up the largest mobile payments network in the U.S. Some companies are pushing NFC, some use QR codes, some like Starbucks just use a traditional bar code. Square does it a bit differently, and it is bringing its talents to Starbucks.
Unlike most other mobile payment systems, Square allows you to pay simply by giving your name. Participating stores will check their Square database which will find your name and your picture, the store employee makes sure you at least look like your picture, and you're good to go. Pretty easy right? Just look like yourself and give your name. Well, now, that system looks like it's coming to Starbucks.
Yesterday, Starbucks announced that it would invest $25 million in Square, which is a startup by Twitter co-founder Jack Dorsey. This means that pretty soon, Square will be available as a payment method in the over 7,000 Starbucks locations. This is great news for Starbucks junkies, because not only will it be as easy as giving your name, this means you'll never have to worry about refilling your Starbucks card any more, since Square just uses your credit or debit card.
Until now, Square was used mostly by smaller retailers, so a deal with Starbucks instantly makes the company a whole lot bigger. If you want to get a jump on it, you can get the Pay with Square app for free in the iTunes App Store
or the Google Play Store