Starbucks has been affiliated with merchant services and mobile payments provider, Square, since fall 2012. Square's point of sale system is now used in over 7000 Starbucks outlets across the United States.
In addition to traditional payment methods, the system allows customers to complete transactions through mobile devices using Android or Apple's iPhone or iPad. You can find out more information about Square on our dedicated information and review page.
Besides this mobile payment functionality, Starbucks partnered with MICROS (now owned by Oracle) to roll out the MICROS Simphony POS in stores worldwide.
The MICROS Simphony POS is hugely popular and is made to service large enterprises which are spread across many locations. Other similar companies who have opted for MICROS POS solutions include Pizza Hut and T.G.I. Friday's.
Starbucks is already seeing strong results from mobile payments. The company made an estimated $1.9 billion in revenue from mobile payments in 2016 according to industry analysts.
To use Starbucks' mobile POS system customers must first downloads the Starbucks mobile payment and loyalty app.
This payment app is used by more than 10 million customers in the United States, with an average of 5 million transactions every week.
Square and Starbucks
Back in August 2012, Starbucks and Square formed a prestigious partnership which was destined to be beneficial for both parties. The deal consisted of a number of agreements, most noticeably the agreement for Square to process all card payments for Starbucks.
In return for this, Starbucks invested $25 million dollars into Square and the Starbucks founder Howard Schultz was placed on the Square board for a year.
The result of these agreements was a massive boost for the square brand. Although the deal has since broken down, it provided Square with the platform to be seen as a highly capable payment solution for big brands and as a result, more big brands came to Square which all helped to grow the company and give them more power.
The Starbucks POS Outage: April 24th 2015
On Friday April 24th, Starbucks experienced a POS outage which meant that Baristas across the world were unable to ring up customer transactions. As a result of this, many of the stores across the U.S. and Canada simply gave the coffees away for free. Whilst some stores instead opted to close early, eventually all stores were forced to close.
Whilst Starbucks referred to the issue as one which only affected North America, due to the time differences across the world, it is likely that the issue simply went unnoticed in countries like the UK. However, across social media and online forums, Starbucks employees have been quick to comment that even in the UK the systems failed.
Stores opened again as usual on Saturday April 25th (this included the Teavana and Evolution Fresh stores which were also affected). An official release from Starbucks was quick to clarify that the issue was due to an internal outage and not an external breach or hacker.