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Starbucks Sells Square Readers; Small Businesses Can Accept Credit Cards Anywhere

January 3, 2013 By: Jena Tesse Fox
 


Independent business owners may want to stop by a Starbucks soon: The coffee conglomerate has partnered with Square, the mobile credit card service that lets users process most cards (for a 2.75 percent transaction fee, of course), and is now selling the reader extension for iPhones, iPads and Android devices. 

According to the New York Times, all 7,000 Starbucks cafes in the United States are now selling Square’s mobile credit card reader for $10. Even better: People new to Square can sign up and get a $10 rebate, effectively making the reader free.

Linda Mills, a Starbucks spokeswoman, said selling the reader was another step to show the company’s commitment to Square. (The theory is that businesspeople will want to meet in coffeehouses, and that the mobile gadget will help promote transactions outside of offices.) In August, the company said every American Starbucks cafe would accept payments from Square’s payment app, Square Wallet. Starbucks also invested $25 million in the start-up, and Howard D. Schultz, Starbucks’ chief executive, joined Square’s board.

Is this the next big step towards a cash-free society? And how will this impact independent businesses, like home-based travel agencies? If any person can accept a credit card (and keep 97.25 percent of the money), it seems reasonable to assume that small and independent business owners may now find it easier to compete with larger and/or brick-and-mortar companies. We'll have to wait and see how this changes the game.

 

 

 

 


What do you think of this $type?
 

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About the Author

Jena Tesse Fox
Jena Tesse Fox covers Europe, Africa, Australia/South Pacific and business travel for the Questex Travel Group's publications. The daughter of history teachers, she can spend...

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By Jena Tesse Fox | January 3, 2013
All Starbucks cafes in the United States are now selling Square’s mobile credit card reader for $10. People new to Square can get a $10 rebate, making the reader free.