I hate being too dumb to work at places like this. :(
Square http://news.ycombinator.com/item?id=970565 (0 comments)
Square Worth $40 Million Before Launch http://news.ycombinator.com/item?id=970880
Jack Dorsey on Square, How it Works & Why it Disrupts
Square: All Hype and Little Value for Small Business
Strange: "After ordering an item, they waive the phone on a scanner."
It might stand that they're trying to strengthen their core business in the USA, Starbucks could be a good gateway for them moving forward into other countries.
Their European rival had to jump through huge technical hoops (payments offsite, can't swipe, etc) to develop a product and it is a huge box off the phone and they are now trying to jump through more as credit card providers have raised their barrier.
Small business owners have little of either time or money. Anything you can do to improve that is appreciated. Although SBUX is much larger than the family owned businesses I'm familiar with, I'm sure they appreciate it, too.
We've only owned 1 restaurant and if we were high volume enough, being able to carry the register over to the table and have customers pay right away would have been useful.
If I'm reading Square's website correctly, there's a minimum $1 transaction? Our shoe store in 1990 probably wouldn't have cared. Our coffee shop today would care, though.
[sorry, that was retarded, I confused square with a different payment system. disregard.]
"Square will process Starbucks U.S. credit and debit card transactions, which will significantly expand Square’s scale and accelerate the benefits to businesses on the Square platform, especially small businesses, while reducing Starbucks payment processing costs"
The Square Register product takes plastic as well as letting people pay via the geo-fencing Pay with Square app.
This thread is full of misconceptions about payment processing which appear to be simple assumptions stated as facts. Having worked for one of the largest merchant acquirers in the world, it reminds me of glad I am not deal with any of that any longer.
Regardless, they're very clear on the post:
>Square will process Starbucks U.S. credit and debit card transactions, which will significantly expand Square’s scale and accelerate the benefits to businesses on the Square platform, especially small businesses, while reducing Starbucks payment processing costs;
Starbucks saves payment processing costs. That's benefitting them.
So for transactions less than $25 square comes out ahead. I can think of plenty of restaurants that are primarily lunch driven for whom square would make sense (not to mention coffee shops).
One interesting problem with this deal is that it will call attention to just how much money Square users really are spending at Starbucks.
Imagine if most or all of the charges on your Visa bill were from Starbucks, such that you couldn't help but see the total staring you in the face every month. That's the position a Square user will find himself/herself in, at least until more merchants come on board.
With ~7000 stores, Starbucks can be a Walmart of sorts in terms of location based services.
By partnering with Square in return for equity, they are making a play to capitalize on that position. If Square wins in this space, which is much more likely with Starbucks in their corner, Starbucks gets a massive payday.
If they just stick with their existing provider, who is likely already maxed out on their growth curve, there is no such opportunity.
Especially not unless I have HUD glasses that will tell me the cute barista's name.
- Square likely has an exclusive or near-exclusive deal with Starbucks.
- Starbucks has fairly close ties to Apple, if such a system were coming they'd want to be sure Starbucks was involved (so they'd already know about it)
- Assuming #2 is true anyway, that would make the $25 million investment incredibly risky; their stock would be murdered once the news came out.
(Side note: assuming all of the above, this essentially kills any rumors of Apple buying Square; why would Starbucks bother investing in them and getting on the board?)
Hate the double "and", listing should be alphabetical always!
cough cough (not ocd) cough