San Francisco start-up company Square Inc. has received a multi-million dollar investment and partnership from Starbucks Corporation. The investment deal was reached last month, with Starbucks seeking to use Square’s technology to process all debit and credit card transactions in 7,000 locations nationwide. Experts believe that this is another step forward for the mobile credit card processing industry, which allows business owners to accept credit card payments on-the-go through their smartphone or tablet.
Mobile Credit Card Readers from Square Inc.
Square Inc. started making mobile credit card readers for smartphones in 2009. Since then, two million US merchants have started using the device to accept credit card payments from their customers. Today, the device takes the shape of a small white square and can be attached to most smartphones and tablets. Merchants simply swipe their customer’s credit card like they would at a POS terminal, and the payment is processed. This solution has proved useful for merchants who provide at-home services such as construction, landscaping, and even for instructors and tutors giving lessons.
The recent success of Square has allowed them to pursue other ventures, including the Pay with Square mobile app and Square Register software, which aims to replace traditional cash registers with Apple iPads. Starbucks CEO Howard Schultz states that Square’s software will “complement Starbucks’ existing payment systems.”
The Starbucks Deal Explained
With their $25 million investment, Starbucks also gains a lucrative partnership with Square. Along with eventually accepting all debit and credit card payments with Square software, the coffee house chain will also sell the Square mobile credit card readers in-store. As Square lacks a physical retail location, this will help the start-up company sell more devices. In turn, more business owners will find Square readers readily available at their local Starbucks.
Starbucks will also incorporate the Pay with Square app with their payment systems. This will allow users of the app to pay for products at Starbucks simply by using their phone or stating their name to the cashier. While traditional cash registers will stay in place to accept cash transactions, this is yet another way Starbucks seeks to move forward with Square.
Mobile Credit Card Processing Popularity
As Square sees inherent success with their card-reading device, the rest of the mobile credit card reader market is also seeing success. Studies show that many merchants in the US seek convenience when conducting business, and often turn to mobile credit card readers. The accessibility of the software is a key selling point for the devices, as merchants can accept payments wherever they get a WiFi or a 3G signal. Square’s mobile credit card readers also offer multiple pricing plans suitable to different types of businesses.
Instabill’s Mobile Merchant Account
Instabill offers quick and reliable merchant services to merchants in most industries. With a mobile merchant account, US merchants may be able to accept major credit card brands including Visa, MasterCard, Discover, American Express, and Diners Club from any location. With affordable rates starting at $0.05 per transaction, you could start accepting credit card payments through your smartphone or tablet in as little as one week. Additionally, you can choose a dependable card reader that will match your business needs. To apply for your mobile merchant account and receive a free quote, contact us online or call 1-800-318-2713 today.