Next month, all you'll need is your smartphone equipped with the Square Wallet app to buy your latte at Starbucks. In November, Starbucks’ customers will be able to use the Square mobile payment system in about 7,000 U.S. stores.
Starbucks and Square formed a big partnership last August. Starbucks invested $25 million in Square. The deal allows Square to process credit and debit card transactions and implement the Pay with Square system at Starbucks stores.
To use Pay with Square you link a credit card to the app. When you’re paying at the counter, leave your wallet in your pocket. Through the app the store can sense your phone's location and charges your account for the amount of your purchase. The cashier verifies your identity through a picture ID and name that pops up on their screen.
Apple users aren't being left out. The latest update to the Starbucks iOS app lets Starbucks card owners add their accounts to Apple’s Passbook directly through the app. Then you can pay for food and beverages, check your card balances, reload the card with more cash, and add rewards to score free drinks, all through your iPhone.
Unveiled in iOS 6, Passbook lets users store electronic copies of tickets, coupons, boarding passes, and loyalty cards.
Starbucks first launched a Square-powered mobile payment app in 2011. Since then, Starbucks has processed more than 70 million mobile transactions.