Chase Replaces Square as the Payment Processor for Starbucks
Starbucks will soon be partnering with JPMorgan Chase to handle non-mobile payments for the coffee chain. Currently, this task is performed by Square, the company known mostly for its mobile credit and debit card readers.
Square has processed payments for Starbucks for three years, and the company was contractually obligated to do so until the end of the third quarter of 2016. However, the move to Chase Commerce Solutions will begin immediately in the 12,000 stores located in the United States, and should be completed by the spring of next year.
According to Starbucks, the coffee giant processes 47 million transactions per week.
The transition may come as a relief for Square. The company recently reported a $71 million loss as a result of its efforts with Starbucks over the last three years.
While Chase will be getting a lot of business in association with Starbucks, the coffee chain handles a large portion of its transactions through its popular mobile app. Reports from April of this year showed Starbucks runs an average of 8 million weekly purchases through the app. Combine this with the mobile transactions soon to be processed through Apple Pay, and the digital payments sector of Starbucks could grow significantly.