) recently announced that as a part of its partnership with
Square, Square Mobile Card Readers will now be available at its
stores in the U.S. Enabled by its free software, Square Register,
Square Mobile Card Readers will make credit card transactions
easier and can be plugged into iPhone, iPad and Android devices.
In order to enable smooth credit and debit card transactions,
Starbucks had entered into a partnership with Square in August
2012, a company that offers credit card readers for iPhone, iPad
and Android devices. The Starbucks-Square partnership has already
introduced the Pay with Square mobile application and the iPhone
and Android Starbucks mobile payment applications. The
partnership has allowed Starbucks customers to make quick
payments at about 7,000 Starbucks stores.
Square Mobile Card Reader will serve small businesses by
providing them with easy and affordable card processing services,
thus liberating them from hassles associated with credit and
debit card payments. Square Mobile Card Readers will
significantly reduce the interchange fee associated with the use
of debit and credit cards and enhance mobile payment services,
thus encouraging business growth.
Starbucks connects with its consumers through its social,
Internet, mobile, loyalty and cards programs. Starbucks confirmed
that Starbucks cards are now used for 25% of the transactions in
the U.S and the money loaded on the cards grew over 20%. The
company expects 10% of the payments to be made using mobile
application by the end of fiscal 2013.
A peer of
Yum! Brands, Inc.
), Starbucks carries a Zacks #2 Rank (Buy) for the near term.
We are positive about the company's long-term plans. We
appreciate Starbucks' strong market position, new product
launches, rapid growth in China as well as a solid turnaround in
its U.S. business. Following the solid fourth quarter results,
Starbucks upped its forecast for earnings, operating margins and
global net new stores for fiscal 2013.
STARBUCKS CORP (SBUX): Free Stock Analysis
YUM! BRANDS INC (YUM): Free Stock Analysis
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